Resolution plan

A resolution plan is the proposal for the insolvency resolution of a corporate debtor as a going concern under the Insolvency and Bankruptcy Code, 2016. A resolution applicant submits it, the committee of creditors approves it by vote, and the adjudicating authority approves it under section 31, after which it binds the corporate debtor, its creditors and other stakeholders.

The Insolvency and Bankruptcy Code (Amendment) Act, 2026 added, from 26 May 2026, a duty on the tribunal to rule on a plan within thirty days of receipt, and new sub-sections (5) and (6) of section 31 that preserve the debtor's licences, permits and registrations and extinguish pre-approval claims under other laws. On the Board's figures as at 30 June 2026, plans took 633 days on average to approval and financial creditors realised 30.52 per cent of their admitted claims. How far sub-section (6) reaches into statutory dues and attachments is unsettled as at 21 September 2026.