What is a Resolution Professional?
Under the Insolvency and Bankruptcy Code, 2016 (IBC), when a company becomes insolvent (i.e. fails to meet its debt obligations), there is a legal, structured process to either revive (resolve) the company or liquidate it. The key to this process is the role of the Resolution Professional (RP) — a specialized, licensed expert entrusted with managing the insolvency process, protecting the value of assets, balancing stakeholder interests, and ensuring compliance with legal/regulatory norms.
For any distressed business — whether in manufacturing, retail, services or technology — engaging a capable RP (or RP-service provider) can mean the difference between orderly resolution (rescue / restructuring) and chaotic liquidation or value erosion. The firm whose service page you shared offers just that: expert support by certified resolution professionals to guide businesses through insolvency, restructuring, compliance, stakeholder negotiation and more.
In the sections below, I explain in detail who an RP is, how and when they are appointed, what exactly they do, why their role is complex and critical, and what services a professional RP-service provider offers to distressed businesses, along with benefits and strategic value.
Who Qualifies as a Resolution Professional — Regulatory Foundation
What is an RP under the IBC
- A “Resolution Professional” is defined under IBC (Section 5(27)) as an “insolvency professional appointed to conduct the Corporate Insolvency Resolution Process (CIRP)”, and this includes the interim resolution professional (IRP) until the full-time RP is confirmed.
- Before becoming an RP, the person must be an “insolvency professional” (IP), i.e. registered with an Insolvency Professional Agency and with the national regulator Insolvency and Bankruptcy Board of India (IBBI), and must have passed necessary examinations/qualifications under the IBBI regulations.
- Crucially, the RP (and the insolvency-professional entity (IPE) to which he/she belongs) must be independent of the corporate debtor. That means they should not be a related party, nor should any director/partner of IPE be connected to the debtor in disqualifying ways (like being an auditor, consultant, related director, etc.) per IBBI’s eligibility norms.
Thus, not everyone can serve as an RP — and independence, registration, certification with IBBI, and compliance with the code are mandatory prerequisites.
Interim Resolution Professional → Full Resolution Professional
When a CIRP application is admitted by the adjudicating authority (commonly the National Company Law Tribunal, NCLT), the authority appoints an Interim Resolution Professional (IRP) to immediately take control of the company’s affairs.
Once the creditors form the Committee of Creditors (CoC) (based on admitted claims), at their first meeting — usually within 7 days of constitution — the CoC decides whether to confirm the IRP as RP, or replace with another eligible insolvency professional.
If CoC chooses a new RP, they submit a proposal (with RP’s consent) to the NCLT/Adjudicating Authority, which forwards the name to IBBI, and formal appointment is made from the official IP panel.
This ensures that the RP is viewed as legitimate, independent, and accepted by creditors — which is vital for smooth insolvency resolution.
Why the Role of Resolution Professional Is Critical — And Challenging
The RP is often described as a “bridge” or “pillar” in the IBC framework — a vital connecting link among the Adjudicating Authority (NCLT), Committee of Creditors (CoC), Information Utilities (IUs), and the Corporate Debtor. Their performance significantly affects whether insolvency results in revival or liquidation.
However, the role is also fraught with complexity and constraints:
Strict Eligibility & Independence Requirements
To preserve fairness, the RP must be independent of the debtor. Any conflict of interest — say, being an auditor or adviser to the debtor, or being related to its promoters — disqualifies him/her. This ensures unbiased conduct.
Heavy Legal & Regulatory Compliance Obligations
The entire CIRP is governed by IBC, IBBI regulations, and occasionally other statutory laws (tax, labour, corporate law). The RP must ensure compliance at every step — public announcements, claims collection, asset custody, stakeholder communication, documentation, filings, etc.
Time-bound Process & High Pressure
IBC prescribes a timeline for CIRP (originally 180 days, extendable in limited cases). The RP must work efficiently but diligently — delay can trigger liquidation or failure of the process.
Stakeholder Management & Negotiation Complexity
RP deals with multiple stakeholders — creditors (banks, funders), operational creditors, employees, promoters, potential buyers. Conflicts often arise: creditors want maximized recovery, promoters may want business continuation, employees want security, etc. Managing divergent interests requires skill, negotiation, diplomacy.
Risk of Information Imbalance & Uncertainty
In insolvency, there may be lack of full, clean information about debtor’s assets, liabilities, past transactions. RP needs to gather, verify, sometimes litigate — and premature commitments or errors can lead to loss of asset value or stakeholder mistrust.
Ethical & Professional Conduct Standards
As per IBBI regulations, RP must maintain high standards: integrity, impartiality, confidentiality, avoid conflicts of interest, refuse gifts or undue influence, and act transparently. Any breach can lead to disqualification or legal consequences.
Because of these challenges — and because outcomes (revival or liquidation) significantly impact creditors, employees and the economy — many businesses choose to engage seasoned, professional RP-services rather than attempt in-house or ad-hoc management.
Key Features of Our Resolution Professional Services
Once appointed, the RP assumes a broad, multi-faceted role. Their duties are mandated under the IBC and associated IBBI regulations, and they hold both administrative and managerial powers during the CIRP.
Key functions and responsibilities include:
Taking Control of the Corporate Debtor & Assets
- The RP takes custody and control of the assets, operations, and records of the corporate debtor (CD). The earlier management (directors/board) loses control.
- He ensures that business operations continue “as a going concern” — to preserve value, avoid fire-sales, and enable meaningful resolution.
Information Gathering & Verification; Claims Management
- The RP collects comprehensive data about the debtor — finances, operations, assets, liabilities, contracts, ongoing obligations.
- He issues public announcements (on behalf of the CD) calling for claims from creditors, invites and collates claims, verifies them (often using data from Information Utilities or other records), and maintains a revised register of valid claims.
Constituting & Liaising with Committee of Creditors (CoC)
- After claim verification, the RP helps constitute the CoC, which is a body of creditors whose consent/approval is critical for most major decisions.
- He organizes and chairs CoC meetings, under IBC’s procedural and timeline requirements.
Evaluating and Presenting Resolution Plans
- The RP evaluates all submitted resolution plans to ensure compliance with formal requirements (as per IBC / IBBI guidelines).
- He presents these plans to CoC for their approval (voting). CoC’s approval (usually a majority by value) is essential for a plan to move forward.
Interim Finance & Business Continuity
- If required, and with CoC approval, RP may raise interim finance to keep operations going, maintain essential services, pay for necessary expenses, etc.
- RP ensures compliance with regulatory, statutory, legal, financial obligations — such as tax, labour law, contract obligations, payment to employees, ongoing contracts etc. This helps the business survive the interim period.
Avoidance Transactions & Asset Realization (if needed)
- The RP has power to investigate past “avoidance transactions” (e.g. preferential transfer, undervalued sales, fraudulent transfers) and, if appropriate, apply to reverse/avoid such transactions based on IBC provisions.
- In case liquidation becomes necessary (if no suitable plan approved), the RP may transform into a liquidator — realize assets, sell them, and distribute proceeds among creditors per priority.
Thus, the RP wears many hats — asset custodian, manager, negotiator, facilitator, investigator, compliance officer, and sometimes liquidator.
Benefits of Hiring a Resolution Professional
When businesses are under financial distress, time is critical, stakeholders are anxious, and assets (tangible/intangible) are vulnerable — hiring a professional RP-service offers several strategic advantages:
- Expertise and Experience: Insolvency professionals have deep knowledge of IBC, case law, NCLT practices, valuations, finance — reducing risk of procedural mistakes.
- Focus on Core Business (if Possible): Management or promoters can shift focus from crisis-management to stabilizing operations, while RP handles restructuring, compliance, stakeholder negotiations.
- Improved Recovery / Revival Chances: With proper evaluation, better restructuring proposals or resolution plans may be crafted — increasing chances of revival rather than liquidation.
- Minimized Value Erosion: Assets get protected, sale / liquidation happens under fair valuation — avoiding fire-sales or undervalued disposals.
- Reduced Legal & Compliance Risk: All statutory/regulatory requirements are handled by experts — reducing risk of litigation, penalties, delays.
- Neutral & Impartial Mediation: Because RP is independent, stakeholders may find resolution proposals more credible, increasing chances of consensus.
- Access to Network & Resources: Established RP-service providers often have networks — valuers, accountants, legal firms, investors — facilitating better restructuring or sale outcomes.
- Confidentiality & Governance: Structured, transparent, documented process improves corporate governance and stakeholder confidence — helpful for future growth, restructuring, investor interest, or revival.
Thus, professional RP services are not just a legal formality — they become strategic instruments for rescue, restructuring, recovery, or value maximization.
What “Resolution Professional Services” Typically Include
The service page you shared presents a suite of “Resolution Professional Services.” In real practice, a professional RP-service provider (or insolvency-advisory firm) brings together certified insolvency experts, legal professionals, valuers, accountants, negotiators, and uses their industry-wide experience to manage distressed businesses. Here is an expanded breakdown of what such services typically deliver — and why they add value.
Full Insolvency Resolution Process Management
- Assignment of a certified RP/IRP to manage the CIRP from start to finish.
- Custody and protection of assets, records, books, contracts, financials.
- Claim collection, verification, and detailed register maintenance.
- Constituting and managing the Committee of Creditors (CoC).
- Soliciting expression of interest, preparation of information memorandum, inviting resolution plans.
- Coordination with valuers, legal/financial experts, auditors — to ensure accurate asset valuation, debtor’s books, compliance checks.
- Presenting and negotiating resolution plans; facilitating approval process.
- If resolution succeeds — facilitating implementation; if fails — shifting toward liquidation smoothly, ensuring asset realization and maximized recovery for creditors.
Strategic Restructuring, Turnaround & Business-Rescue Advisory
- Analysis of company’s financial state, operational inefficiencies, cash-flow issues, business model problems.
- Designing restructuring plans: cost optimization, renegotiation of contracts, operational streamlining, reworking of liabilities, possibly debt-equity swaps or new capital infusion.
- Negotiating with creditors, lenders, vendors, stakeholders for revised payment terms, moratoriums, or restructuring agreements.
- Interim financing support to sustain operations, pay critical creditors or employees, safeguard assets.
Regulatory Compliance & Governance Assurance
- Ensuring all statutory/regulatory obligations are met: public announcements, filings, transparency norms, reporting to IBBI, compliance with labor laws, tax and other statutory dues, etc.
- Prevention of legal pitfalls — such as fraudulent transfers, preferential payments (avoidance transactions), undisclosed liabilities.
- Maintaining confidentiality, impartiality, and procedural fairness — boosting credibility among creditors, stakeholders, and courts.
Stakeholder & Creditor Liaison / Negotiation / Representation
- Serving as neutral facilitator between debtor, creditors, lenders, employees, vendors and other stakeholders.
- Negotiating terms of resolution plans, repayment, restructuring, infusion of capital, sale of assets, etc.
- Representing the corporate debtor (or creditor, if firm is engaged by creditor) before NCLT/NCLAT (or in related proceedings) — via empaneled legal partners.
Risk Mitigation & Value Preservation
- Through proper custodianship of assets, avoiding distress-sale of assets, preventing value leakage.
- Avoiding losses due to operational closure, reputational damage, litigations by following legal, procedural, and compliance frameworks.
- Enabling better recovery for creditors (via fair resolution or liquidation), and potential business revival (saving jobs, preserving brand value, continuity).
Tailored, Confidential & Transparent Process
- Every distressed business case is unique; good RP-service providers craft customized strategies depending on industry, business size, debt structure, stakeholder composition, regulatory constraints.
- Transparent communication with stakeholders: periodic updates, clear disclosures, stakeholder meetings, fair documentation and record-keeping.
- Ethical conduct, independence, and professional liability — to build trust among all participants: creditors, buyers, employees, regulators.
In effect, a professional RP service works not just as a “legal bookmark”, but as a business-rescue, value-preserving, reputation-protecting, stakeholder-management and compliance solution.
Benefits of Engaging a Professional RP Service — Why Many Companies Prefer It
When businesses are under financial distress, time is critical, stakeholders are anxious, and assets (tangible/intangible) are vulnerable — hiring a professional RP-service offers several strategic advantages:
- Expertise and Experience: Insolvency professionals have deep knowledge of IBC, case law, NCLT practices, valuations, finance — reducing risk of procedural mistakes.
- Focus on Core Business (if Possible): Management or promoters can shift focus from crisis-management to stabilizing operations, while RP handles restructuring, compliance, stakeholder negotiations.
- Improved Recovery / Revival Chances: With proper evaluation, better restructuring proposals or resolution plans may be crafted — increasing chances of revival rather than liquidation.
- Minimized Value Erosion: Assets get protected, sale / liquidation happens under fair valuation — avoiding fire-sales or undervalued disposals.
- Reduced Legal & Compliance Risk: All statutory/regulatory requirements are handled by experts — reducing risk of litigation, penalties, delays.
- Neutral & Impartial Mediation: Because RP is independent, stakeholders may find resolution proposals more credible, increasing chances of consensus.
- Access to Network & Resources: Established RP-service providers often have networks — valuers, accountants, legal firms, investors — facilitating better restructuring or sale outcomes.
- Confidentiality & Governance: Structured, transparent, documented process improves corporate governance and stakeholder confidence — helpful for future growth, restructuring, investor interest, or revival.
Thus, professional RP services are not just a legal formality — they become strategic instruments for rescue, restructuring, recovery, or value maximization.
Common Misconceptions and What People Often Get Wrong
Because insolvency and bankruptcy is a sensitive, technical area — there are frequent misunderstandings. Here are a few common misconceptions and clarifications:
- “Only banks or large creditors need RP — small companies can handle themselves.”
→ Wrong. Any corporate debtor (regardless of size) undergoing CIRP must have an RP, and those with multiple creditors, complex liabilities, or asset-rich companies benefit more from professional oversight.
- “RP will always liquidate — so better avoid the process.”
→ Not true. The RP’s role is to attempt resolution first — CIRP is meant to restructure or revive where possible. Liquidation is the last resort if a viable plan fails.
- “RP means losing ownership/control forever.”
→ Only while CIRP is ongoing. If a resolution plan is approved, the business may get handed back under new or existing promoters. Also, in liquidation RP’s role ends once assets are realized and proceeds distributed.
- “All RPs are same — any chartered accountant or lawyer can do it.”
→ No. Only certified insolvency professionals, registered with IBBI, independent of debtor, and meeting strict eligibility can be appointed. Experience, knowledge and independence matter.
- “Insolvency resolution will always take too long / cost too much.”
→ Properly managed CIRP (with RP) can be efficient, time-bound and legally compliant — often preserving value far better than unstructured liquidation or ad-hoc debt recovery efforts.
Understanding these ensures realistic expectations when engaging an RP-service.
Why Choose Us?
Choosing our Resolution Professional services means selecting a partner dedicated to your success. Here’s why businesses trust us:
- Proven Track Record: We have successfully guided numerous businesses through the resolution process, helping them emerge stronger and more resilient.
- Personalized Approach: We understand that each business is unique, and we tailor our services to fit your specific circumstances.
- Commitment to Excellence: Our team is committed to delivering high-quality services that meet your needs and exceed expectations.
Get Started Today
If your business is facing financial challenges, don’t wait for the situation to worsen. Engage a Resolution Professional today and take the first step towards recovery. Contact us to learn more about our services and how we can assist you in navigating the complexities of insolvency.
Conclusion: Resolution Professional Services as Strategic Recovery & Value-Protection Tools
The concept of a “Resolution Professional” under the IBC is not merely a legal requirement — it is a keystone in India’s insolvency resolution architecture.
By combining legal, financial, valuation, negotiation, compliance and business-revival expertise, RPs — and especially professional RP-service providers — enable distressed firms to navigate insolvency in a structured, transparent, time-bound, stakeholder-balanced manner.
For companies in crisis, such services offer the best hope of rescue, revival, and value preservation — or, if rescue fails, orderly liquidation and maximized recovery.