IBC Resolution Professional Services

By CA V. Viswanathan — FCA, ACS, CFE, IBBI Registered Valuer (IBBI/RV/03/2019/12333). Updated for FY 2025-26.

The Insolvency and Bankruptcy Code 2016 (IBC) created a structured framework for resolving stressed corporate assets. The Insolvency Resolution Professional (IRP) — appointed by NCLT on admission of a Section 7/9/10 application — and the subsequently confirmed Resolution Professional (RP) play the central role in conducting the Corporate Insolvency Resolution Process (CIRP). Virtual Auditor's team includes IBBI-registered Insolvency Professionals (IPs) with experience across manufacturing, infrastructure, real estate, financial services, and IT sector resolutions.

Role of the IRP and RP

Upon admission of an insolvency application, NCLT appoints the IRP. Within 30 days, the Committee of Creditors (CoC) is constituted from financial creditors who have filed claims. The CoC confirms the IRP as RP or appoints another by majority vote. The RP then conducts the CIRP for 180 days (extendable to 270/330 days), with the objective of maximising value of corporate debtor's assets. Key responsibilities: (1) take control of corporate debtor and run as going concern; (2) verify claims and constitute CoC; (3) preserve assets; (4) appoint two registered valuers; (5) issue Information Memorandum and invite Resolution Plans; (6) evaluate and facilitate CoC voting on Resolution Plans; (7) implement approved Plan or recommend liquidation.

Claims Verification — A Quantitative Process

Within 14 days of public announcement, claims must be filed by all stakeholders (financial creditors, operational creditors, workmen, employees, government dues, other creditors). The IRP/RP verifies each claim against books, evidence, and applicable law. Disputed claims may be admitted at lower amount, conditionally admitted, or rejected — with reasoned written orders. Financial creditor claims drive CoC voting weight (proportionate to admitted claim amount). Errors in claim verification can derail the entire CIRP — courts have invalidated Resolution Plans where claim admission was found defective. Our methodology applies forensic-accounting principles to claim review with full audit trail.

Valuation Oversight

RP appoints two IBBI Registered Valuers for each asset class (Land & Buildings, Plant & Machinery, Securities & Financial Assets) to determine: (a) Fair Value (going concern assumption); (b) Liquidation Value (asset-by-asset distress sale). Average of the two valuers' figures is used. RP must oversee the valuation methodology, challenge unrealistic assumptions, and present coherent valuation to CoC. Valuation determines minimum acceptable Resolution Plan consideration and provides the benchmark for liquidation-vs-resolution decision. With CA V. Viswanathan as IBBI Registered Valuer (IBBI/RV/03/2019/12333), Virtual Auditor offers integrated RP-Valuer-Auditor capability under one roof.

Resolution Plan Process

RP issues Information Memorandum to qualified Prospective Resolution Applicants (PRAs) — entities meeting Section 29A eligibility (no default history, no preferential transactions, no convicted promoters). PRAs conduct due diligence and submit Resolution Plans within timeline. RP evaluates each Plan against: (a) feasibility — capability to execute; (b) viability — financial and operational sustainability; (c) compliance with mandatory Plan content (Section 30(2)); (d) treatment of stakeholders. CoC votes on Plans by 66% majority (modified from earlier 75%). NCLT approves the Plan with consequential orders for stamp duty, tax neutrality, and litigation immunity.

Common Pitfalls in CIRP

(1) Late or incomplete public announcement leading to claim-filing delays; (2) Inadequate forensic review of corporate debtor's records — preferential, undervalued, fraudulent, extortionate transactions go undetected; (3) Valuation disputes between two valuers without RP-led reconciliation; (4) Section 29A eligibility errors in PRA shortlisting; (5) Failure to file periodic progress reports with NCLT; (6) Inadequate documentation of CoC decisions and vote rationale; (7) Avoidance of difficult judgment calls (going-concern operations, capex commitments) that destroy value. Each of these has been the subject of NCLAT and Supreme Court rulings.

Engagement and Fees

RP fees are determined by CoC and approved by NCLT — typically a monthly retainer plus expenses, with success-linked component for higher-realisation Plans. Range: ₹3-15 lakhs/month for medium-complexity CIRPs; higher for large or contested matters. Pre-CIRP advisory and post-resolution implementation are separately scoped. We act as RP for both creditor-led (Section 7) and operational-creditor-led (Section 9) admissions, and as Liquidator where CIRP fails or is liquidation-track from the start.

How Virtual Auditor Delivers This

Virtual Auditor's CA-CS-IBBI Valuer team handles ibc resolution professional services as an integrated engagement — no hand-offs between firms, single point of accountability, fixed-fee transparency. CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) personally reviews every engagement deliverable. Offices in Chennai, Bangalore, and Mumbai serve clients across India. Free 30-minute scoping consultation available — no obligation.

Get Started — Free Consultation

Call +91 99622 60333 or email support@virtualauditor.in to schedule a free 30-minute consultation with CA V. Viswanathan. No obligation. We will give you a clear scope, timeline, and fixed-fee quote within 24 hours of the call.