By S&S Co. Advocates & Solicitors · Published 29 September 2026 · Informational content, not legal advice: see our disclaimer
Overview
A guide for a resolution applicant, resolution professional or CoC member explaining the mandatory contents a resolution plan must satisfy under Section 30(2) of the IBC before it can be placed before the Committee of Creditors for approval.
What You Need to Know
- Section 30(2) requires a resolution professional to confirm that a resolution plan provides for the payment of insolvency resolution process costs in priority to other debts, and does not fall foul of any of the plan's mandatory contents before placing it before the CoC for approval.
- The plan must provide for payment of debts to operational creditors in a manner that is not less than the amount they would receive in a Section 53 liquidation, or the amount they would receive under a resolution plan distributing value on a similar priority basis, whichever is higher, and this payment must be made in priority over financial creditors' dues.
- The plan must provide for the management of the corporate debtor's affairs after approval, and must be compliant with the provisions of any law for the time being in force, including confirmation that the resolution applicant satisfies the eligibility requirements under Section 29A.
- The plan must provide for the implementation and supervision of the plan, and demonstrate that it is capable of being implemented, including a credible source and timeline for the funds required, whether through the resolution applicant's own resources, external financing, or a combination.
- A resolution professional who places a non-compliant plan before the CoC, or a CoC that approves a plan without confirming Section 30(2) compliance, exposes the plan to being set aside at the adjudicating authority stage or on appeal: the resolution professional's certification under Section 30(2) is treated as a substantive gatekeeping function, not a formality.
Frequently Asked Questions
What is the minimum a resolution plan must pay to operational creditors?
Not less than the amount operational creditors would receive in a Section 53 liquidation of the corporate debtor, or the amount payable under a plan distributing value on a similar priority basis, whichever is higher. And this must be paid in priority to financial creditors.
Does the resolution professional certify a plan's compliance before the CoC votes on it?
Yes. Section 30(2) requires the resolution professional to confirm the plan meets its mandatory statutory requirements before placing it before the Committee of Creditors for approval; this is a substantive check, not a procedural formality.
Can a non-compliant plan still be approved by the CoC's commercial wisdom?
No. CoC commercial wisdom governs the plan's commercial terms, but compliance with Section 30(2)'s mandatory legal requirements is independently reviewed by the adjudicating authority and cannot be cured by CoC approval alone.
References & Further Reading
This guide references the following statutes, rules and sources, cross-checked at the time of writing.
- Mandatory contents of a resolution plan under Section 30(2), including the operational creditor minimum-payment floor: well-settled statutory framework, confirmed via IBC Laws and CIRP Regulations commentary at research time
- Resolution professional's certification/confirmation role under Section 30(2) as a substantive gatekeeping function: confirmed via appellate tribunal commentary at research time
- Section 29A eligibility confirmation as part of plan compliance: well-settled, confirmed at research time
- See also our IBC & Insolvency Notable Judgments and Legal Updates: IBC & Insolvency archive.