Resolution officers to give notes on resolution applicant eligibility in IBC
This story was originally published at 19:43 IST on 18 November 2025
Register to read our real-time news.Informist, Tuesday, Nov. 18, 2025
NEW DELHI – The resolution professional of a debt-ridden company will have to submit detailed notes on the eligibility of an applicant to submit a resolution plan during a corporate insolvency resolution process, the Insolvency and Bankruptcy Board of India said Tuesday in a circular. The move is to strengthen due diligence under Section 29A of the Insolvency and Bankruptcy Code, 2016.
The resolution professional must ensure that deliberations and observations of the committee of creditors of a debt-ridden company are properly recorded in the minutes of the meeting on a resolution applicant's eligibility, the bankruptcy board said.
Section 29A of the 2016 Code lays down the ineligibility criteria for resolution applicants. Section 29A states that an undischarged insolvent and wilful defaulter, whether a person or a company, shall not be eligible to submit a resolution plan.
Due diligence with respect to Section 29A of the code is paramount as it safeguards the integrity of the process by ensuring that only credible resolution applicants participate in the insolvency resolution process, said the board. It also reduces the risk of legal challenges after approval of the resolution plan, it added. End
Reported by Surya Tripathi
Edited by Nishant Maher
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
