LibraryDuties of the RP during CIRP

Duties of the RP during CIRP

Learn about Duties of the RP during CIRP as part of Insolvency and Bankruptcy Code (IBC) Practice

Duties of the Resolution Professional (RP) during Corporate Insolvency Resolution Process (CIRP)

The Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016, is a time-bound process aimed at resolving the insolvency of a corporate debtor. At the heart of this process is the Resolution Professional (RP), an independent insolvency professional appointed to manage the affairs of the corporate debtor during CIRP. The RP plays a pivotal role, acting as a fiduciary and an officer of the Adjudicating Authority, with a wide array of duties to ensure the process is conducted efficiently, transparently, and in accordance with the law.

Key Responsibilities of the Resolution Professional

The duties of the RP are multifaceted and evolve throughout the CIRP. They can be broadly categorized into initial, ongoing, and concluding responsibilities. The primary objective is to preserve the value of the corporate debtor and promote its resolution.

What is the primary objective of the Resolution Professional during CIRP?

To preserve the value of the corporate debtor and promote its resolution.

Ongoing Duties and Management

Once the CIRP is underway, the RP's role shifts to active management and facilitation, ensuring the process moves towards a resolution.

The RP is an officer of the Adjudicating Authority and must act impartially, transparently, and with utmost good faith.

The Resolution Professional's role can be visualized as a central hub connecting various stakeholders and processes within the CIRP. The RP receives information from the corporate debtor and creditors, processes it, and disseminates it to the Committee of Creditors and the Adjudicating Authority. The RP also facilitates the flow of resolution plans from applicants to the CoC. This intricate network requires strong organizational, communication, and analytical skills.

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The RP's duties extend to the conclusion of the CIRP, whether through a successful resolution or liquidation.

What happens if a resolution plan cannot be approved or implemented?

The Resolution Professional initiates the liquidation process.

The duties of the RP are governed by the Insolvency and Bankruptcy Code, 2016, and the regulations framed thereunder. Adherence to these provisions is crucial for the effective functioning of the insolvency regime.

Learning Resources

Insolvency and Bankruptcy Code, 2016 (as amended)(documentation)

The primary legal document governing insolvency and bankruptcy in India. Essential for understanding the framework and RP duties.

Insolvency and Bankruptcy Board of India (IBBI) - Regulations(documentation)

Detailed regulations issued by IBBI that provide specific guidelines and procedures for CIRP and the conduct of IPs, including RPs.

Role of Resolution Professional under IBC(blog)

A blog post explaining the key roles and responsibilities of a Resolution Professional in the CIRP process.

Duties and Responsibilities of Resolution Professional(blog)

An article detailing the various duties and responsibilities that a Resolution Professional must undertake during the CIRP.

Understanding the CIRP Process: A Guide for Stakeholders(blog)

A comprehensive guide to the Corporate Insolvency Resolution Process, outlining the stages and the role of the RP.

The Resolution Professional: An Officer of the Court(blog)

An insightful article discussing the quasi-judicial role of the Resolution Professional and their accountability.

NCLT (National Company Law Tribunal) Website(documentation)

The official website of the NCLT, which adjudicates insolvency and bankruptcy cases. Provides access to orders and judgments relevant to RP duties.

Key Aspects of Corporate Insolvency Resolution Process (CIRP)(video)

A video explaining the key aspects of the CIRP, including the role and responsibilities of the Resolution Professional.

The Insolvency and Bankruptcy Code, 2016 - A Comprehensive Overview(video)

A detailed video providing a comprehensive overview of the IBC, with specific segments on the CIRP and the RP's functions.

Insolvency Professionals Agency (IPA) - ICSI(documentation)

Information about the Insolvency Professionals Agencies, which are crucial for the registration and regulation of Insolvency Professionals, including RPs.