Insolvency and Bankruptcy Code, 2016

Section 30: Submission of Resolution Plan under the IBC

Section 30 sets out how an eligible resolution applicant submits a plan, how the resolution professional checks it, and how the committee of creditors considers and approves it before submission to the National Company Law Tribunal (NCLT).

Key rule: A resolution plan requires approval by at least 66 percent of the voting share of the committee of creditors (CoC), not the 75 percent stated in older versions of the Code. The plan must also satisfy the statutory and regulatory requirements.

Meaning and scope of Section 30

The corporate insolvency resolution process (CIRP) aims to resolve a corporate debtor's insolvency through a legally compliant resolution plan. Section 30 works with the Insolvency and Bankruptcy Code, 2016 and the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, particularly Regulations 38 and 39. The resolution professional examines compliance; the CoC assesses commercial feasibility and viability; and the Adjudicating Authority considers approval under Section 31.

Section 30 explained, subsection by subsection

Section 30(1): Submission of a resolution plan

A resolution applicant may submit a resolution plan to the resolution professional, prepared on the basis of the information memorandum. The applicant must meet the eligibility requirements of Section 29A and the applicable invitation and process requirements.

Section 30(2): Mandatory compliance checks

The resolution professional must examine every plan received and confirm that it meets the following statutory conditions:

Insolvency resolution process costs: the plan must provide for payment of CIRP costs in the manner specified by the Board, in priority to other debts.
Operational creditors: the plan must provide payment of operational creditors' debts in the manner specified by the Board, not less than the higher of the amount payable in liquidation under Section 53 and the amount they would receive if the resolution plan distribution were made according to Section 53(1). The plan must also provide for payment to dissenting financial creditors of at least the amount payable to them under Section 53(1) in liquidation.
Post-approval management: it must provide for management of the corporate debtor's affairs after approval.
Implementation and supervision: it must provide arrangements to implement and monitor the plan.
Compliance with law: it must not contravene any law in force.
Other requirements: it must satisfy further requirements specified by the IBBI, including the applicable CIRP Regulations.

The payment requirements in clause (b) reflect amendments to the original 2016 wording; the older liquidation-only formulation is incomplete.

Section 30(3): Presentation to the committee of creditors

The resolution professional presents compliant resolution plans to the CoC for its consideration. A compliance review does not itself amount to approval of the plan.

Section 30(4): CoC approval and voting threshold

The CoC may approve a plan by a vote of not less than 66 percent of the voting share of financial creditors, after considering feasibility, viability, the proposed distribution (including the order of priority under Section 53 and the priority and value of secured creditors' security interests), and other prescribed requirements. The subsection also contains provisos addressing Section 29A ineligibility and certain legacy plans. The CoC's commercial decision is subject to the statutory framework.

Section 30(5): Attendance by the resolution applicant

The resolution applicant may attend the CoC meeting in which its plan is considered. The applicant does not acquire voting rights merely by attending; voting rights, if any, depend on its status as a financial creditor and the applicable provisions of the Code.

Section 30(6): Submission to the Adjudicating Authority

The resolution professional submits the CoC-approved resolution plan to the Adjudicating Authority, ordinarily the NCLT for corporate persons. Under Section 31, the Tribunal considers whether the plan meets the applicable statutory requirements before approving it.

Important legal definitions

Resolution applicant (Section 5(25)): a person who, individually or jointly with another person, submits a resolution plan to the resolution professional pursuant to the invitation under Section 25(2)(h).
Resolution plan (Section 5(26)): a plan proposed by a resolution applicant for insolvency resolution of the corporate debtor as a going concern in accordance with Part II of the Code.
Resolution professional (Section 5(27)): an insolvency professional appointed to conduct the CIRP, including the role performed by an interim resolution professional where applicable.
Committee of creditors (Section 21): the committee constituted under the Code, generally comprising financial creditors and exercising voting rights according to their voting shares.
Operational creditor (Section 5(20)): a person to whom an operational debt is owed, including a person to whom that debt has legally been assigned or transferred.
Insolvency resolution process costs (Section 5(13)): the categories of costs defined by the Code, including specified interim finance, professional fees and other prescribed expenses.

Practical sequence for a resolution plan

The resolution professional prepares and shares the information memorandum under Section 29, subject to confidentiality safeguards.
Eligible prospective applicants participate in the process and submit plans within the applicable timetable.
The resolution professional checks plans against Section 30(2) and the applicable CIRP Regulations.
The CoC evaluates compliant plans, including feasibility, viability and proposed distributions.
A plan obtaining at least 66 percent of the relevant voting share may be approved by the CoC.
The resolution professional submits the approved plan to the NCLT for consideration under Section 31.

Regulatory requirements and related provisions

Regulation 38 deals with mandatory contents of a resolution plan, including specified stakeholder payments and implementation arrangements. Regulation 39 addresses submission, consideration and approval procedures. The applicable amended text should be checked before relying on any deadline or filing requirement. Related provisions include Section 29 (information memorandum), Section 29A (ineligible resolution applicants), Section 31 (approval of resolution plan), and Section 53 (distribution priority in liquidation).

Official legal resources

Updated: 21 October 2026. This article is explanatory; refer to the latest notified statutory and regulatory text for a particular case.