What is Resolution Professional (RP)?
A Resolution Professional (RP) is an Insolvency Professional confirmed by the Committee of Creditors to conduct the Corporate Insolvency Resolution Process. The RP runs the company as a going concern, invites resolution plans and presents the approved plan to NCLT.
| Meaning | A Resolution Professional (RP) is an Insolvency Professional confirmed by the Committee of Creditors to conduct the Corporate Insolvency Resolution Process. The RP runs the company as a going concern, invites resolution plans and presents the approved plan to NCLT. |
|---|---|
| Category | Legal & Insolvency |
| Related Laws | IBC 2016 |
| Who Uses It | Creditors, debtor, NCLT, IBBI |
| Why It Matters | Quality of the RP often determines value preservation. |
Resolution Professional (RP) explained in plain English
A practitioner's view written for borrowers and advisors — not a textbook definition.
A Resolution Professional (RP) is an Insolvency Professional confirmed by the Committee of Creditors to conduct the Corporate Insolvency Resolution Process. The RP runs the company as a going concern, invites resolution plans and presents the approved plan to NCLT.
In practice, Resolution Professional (RP) is used most often by creditors, debtor, nclt, ibbi. Each of them sees the term from a slightly different angle: borrowers care about protection and outcomes, lenders care about classification and recovery, regulators care about consistency and disclosure.
The legal anchor for Resolution Professional (RP) is IBC 2016. RBI master directions, the SARFAESI Act 2002, the RDB Act 1993 and the IBC 2016 commonly interplay, depending on the loan size, security and stage of stress.
Why does it matter? Quality of the RP often determines value preservation. For a stressed borrower, getting this concept right early often saves several months of penal interest, legal cost and credit-score damage.
A real example: RP runs the corporate debtor's operations for 180 days while inviting resolution plans. The mechanics may look complex, but the underlying logic — the bank wants closure, the borrower wants a fair outcome — is straightforward once the right framework is in place.
If you are facing a situation involving Resolution Professional (RP), the safest first step is a structured case review with a senior ex-banker who has handled comparable matters across banks and ARCs in India.
Where you'll encounter Resolution Professional (RP)
Whenever a loan moves from "Standard" to "stressed", Resolution Professional (RP) is one of the words that starts appearing in notices, bank emails and lawyers' opinions.
Sanctioning committees, recovery teams and risk officers use Resolution Professional (RP) to classify accounts, decide provisioning and approve resolution paths.
Resolution Professional (RP) appears in pleadings, securitisation applications, OAs, Section 7/9 petitions and SARFAESI writs as part of the dispute record.
When stressed loans are sold to ARCs or special-situations investors, Resolution Professional (RP) is used in term sheets, assignment agreements and due-diligence reports.