Section 5(26) of the IBC, 2016 - "Resolution plan" means a plan provided by the resolution applicant for the corporate debtor's bankruptcy resolution as a going concern in line with Chapter II of Part II of the Insolvency and Bankruptcy Code. A resolution applicant, in simple terms, is "anyone who submits a resolution proposal to the resolution professional."
A Resolution Plan is a rehabilitation plan for a corporate debtor (CD) that is going into insolvency. It is a report based on the information memorandum provided by the Resolution Professional that focuses on legal, financial, management, and technical methods to help the CD get back on its feet. It must be approved by the committee of creditors ("COC") and meet the IBC's required conditions.
A Resolution Applicant must submit information in accordance with the RFRP (Request for Resolution Plan) which is shared by RP after Coc’s approval along with the requirements set forth in the IBC, 2016 and CIRP Regulations. The applicant must sign and date each document in the place given therein and also sign each page of all documents. (The Resolution Applicant must submit any undertakings, authorizations, forms, documents, and information needed by Applicable Law and available in this RFRP.) Documents connected to the Resolution Plan should be signed in the manner specified in the relevant format of such document in this RFRP, either by the Resolution Applicant or an Authorised Representative of the Resolution Applicant. All requisite forms, documents, and authorizations must be signed and stamped by the Authorised Representative of the Resolution Applicant. (Each Resolution Applicant shall submit an affidavit in support of the IBC, 2016 related Undertaking, which should be certified and notarized by a notary public.) A Resolution Applicant should give the requested information to prove the Resolution Applicant's competence and ability to manage and administer the company to the satisfaction of the CoC. Strict adherence to forms, documentation, or authorizations stipulated in the RFRP is needed. Where information is sought in specified forms/documents/authorizations, the Resolution Applicant must refrain from using any brochures/pamphlets. Non-compliance with forms, documentation, or authorizations, as well as the submission of inadequate material, may result in the Resolution Plan being declared non-responsive. Each form, paper, or authorization must be signed by the Resolution Applicant and correctly stamped / corporate seal affixed.
The Resolution Applicant is responsible for preparing the Resolution Plan in compliance with the IBC, the CIRP Regulations (as amended to date), and this RFRP. According to Section 30 of the IBC, 2016 and Regulations 38 and 39 of the CIRP Regulations, the Resolution Applicant must include the following in the plan:
The Applicant shall, in accordance with the IBC and the CIRP Regulations, in particular Regulation 38 thereof, provide in the plan, all such details in the Resolution Plan, including but not limited to those mentioned in this RFRP document, which shall be required to assess the viability and feasibility of the plan by the Committee of Creditors.
To implement the plan, the IBC, under Regulation 38 (2), requires the resolution plan to clarify the following points:
To summarize, the v becomes applicable on the CD and its stakeholders, including the Central Government, the State Government, or any other local authority to whom the CD owes any statutory dues after the committee of creditors approves it under Section 30 (4) and the Adjudicating Authority orders it under Section 31(2).
