ICAI Handbook On Resolution Plan Under The Insolvency and Bankruptcy Code, 2016
The Insolvency and Bankruptcy Code, 2016 (IBC) has been introduced with the overall objective of promoting entrepreneurship and balance the interest of all stakeholders by consolidating and amending the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner. When we look at the objectives of the Code; the distinguishing feature that comes before us is the Resolution Plan which one can say emphatically to be the key success of IBC era.
IBC provides detailed process for submission of Resolution Plan and the approval for the same by the Adjudicating Authority. It clearly specifies the steps for invitation for expression of interest by Resolution Professional from interested and prospective resolution applicants to submit resolution plans. Further, it also specifies the mandatory contents of the Resolution Plan.
The defining part in the entire framework of insolvency resolution under The Insolvency and Bankruptcy Code, 2016 is the approval of the Resolution Plan which is binding on the corporate debtor and its employees, members, creditors and other stakeholders. Timely resolution helps to promote entrepreneurship and availability of credit and also the time-bound process paves way to Ease of Doing Business in an economy like ours.
As provided in the Code, Resolution Plan is meant for insolvency resolution of the Corporate Debtor as a going concern. It is fundamentally held that Liquidation should be the last resort. The Code is envisaged for resolution of corporate debtor and not for recovery of debt by creditors. Considering the significance of a Resolution Plan in the process of insolvency resolution, the Committee on Insolvency & Bankruptcy Code of ICAI has brought out this publication -Handbook on Resolution Plan under The Insolvency and Bankruptcy Code, 2016 so as to familiarise with the various provisions as provided under the Code.
The publication covers the various facets related to Resolution plan, its implications, the role of Resolution Professional and the Frequently Asked Questions on the same.