IBC, 2016 : Mandatory Requirements of Section 30(2) of the IBC

IBC, 2016 : Mandatory Requirements of Section 30(2) of the IBC

In the recent decision of Piramal Capital and Housing Finance Ltd v. 63 Moons Technologies Ltd [2025] GCtR 739 (SC), the issue discussed were what are the mandatory requirements, a Resolution Professional is required to confirm on the receipt of the RPs submitted by the PRAs. As per sub-section (1) of Section 30, a RA may submit a RP along with an affidavit stating that he is eligible under Section 29(A), to the Resolution Professional prepared on the basis of the information memorandum. On the receipt of RPs from the eligible RAs, the Resolution Professional has to examine each RP to confirm that each RP provides for the payment of Insolvency Resolution Process cost in the manner specified by the Board in priority to the payment of other debts of the CD, and provides for the payment of debts of operational creditors in such manner as may be prescribed by the Board, as required under sub-section (2) of Section 30. The Resolution Professional has also to confirm that each RP provides for the management of the affairs of CD after the approval of the RP; the implementation and supervision of the RP; and also that the plan does not contravene any of the provisions of the law for the time being in force, and such other requirements specified by the Board. The other mandatory contents of a RP have been specified in Regulation 38 of the Regulations, 2016.