Resolution Professional Becomes Functus Officio After Approval of Plan under IBC: NCLT

The National Company Law Tribunal (NCLT) has ruled that a resolution professional becomes functus officio after the approval of a resolution plan under the Insolvency and Bankruptcy Code (IBC). The case involved a dispute over the role of the resolution professional post-approval of the resolution plan. The NCLT clarified that once the resolution plan is approved by the committee of creditors and the NCLT, the resolution professional’s role is limited to facilitating the implementation of the plan. The tribunal emphasized that the resolution professional cannot take any further actions or make decisions on behalf of the corporate debtor after the plan’s approval. This ruling provides clarity on the scope of the resolution professional’s duties and reinforces the finality of the resolution plan approval process. The decision aims to ensure a smooth transition from the resolution process to the implementation phase, promoting certainty and stability in insolvency proceedings.