A resolution plan is a proposal that aims to provide a resolution to the problem of the corporate debtor’s insolvency and its consequent inability to pay off debts. To ratify a resolution plan regarding the revival of a corporate defaulter, the committee of creditors (CoC) should pass the plan by a majority vote of not less than 66% of the voting share of the financial creditors.
A definition of the resolution plan was made after the 2019 amendment. As per the amendment, a resolution of corporate debtor as a going concern may also include the provisions for corporate restructuring, including by way of merger, amalgamation and demerger.
