Section 30 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 30 governs a resolution plan from submission to the point where the resolution professional sends it to the Adjudicating Authority: the applicant's affidavit, the resolution professional's checklist in sub-section (2), the committee's vote in sub-section (4) and the applicant's attendance at the meeting. This article reads it as per the IBBI consolidated text of the Code amended up to 12 August 2021 and then covers the changes the Insolvency and Bankruptcy Code (Amendment) Act, 2026 makes to sub-sections (2) and (4).
A resolution applicant submits a plan with an affidavit that he is eligible under section 29A. The resolution professional checks that it provides for process costs first, a minimum payment to operational creditors (the higher of two liquidation-based amounts), the management and supervision of the plan, and compliance with law. The committee approves by not less than sixty-six per cent. of the voting share of financial creditors. The 2026 Act moves the dissenting financial creditors' floor into a new clause (ba).
Sub-section (1): submission and the affidavit
"A resolution applicant may submit a resolution plan along with an affidavit stating that he is eligible under section 29A to the resolution professional prepared on the basis of the information memorandum." Eligibility is in section 29A; see our post on section 29A. The memorandum is prepared under section 29; see the section 29 article.
Sub-section (2): what the resolution professional must confirm
The resolution professional "shall examine each resolution plan received by him to confirm that each resolution plan" meets these tests.
| Clause | Requirement (consolidated text) |
|---|---|
| (a) | provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the payment of other debts of the corporate debtor |
| (b) | provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than the amount in a liquidation under section 53 or the amount that would have been paid if the amount to be distributed under the plan had been distributed in accordance with section 53(1), whichever is higher; and provides for the payment of debts of financial creditors who do not vote in favour of the plan, in the manner specified, which shall not be less than the amount to be paid to such creditors in accordance with section 53(1) in the event of a liquidation |
| (c) | provides for the management of the affairs of the corporate debtor after approval of the plan |
| (d) | the implementation and supervision of the resolution plan |
| (e) | does not contravene any of the provisions of the law for the time being in force |
| (f) | conforms to such other requirements as may be specified by the Board |
Clause (b) has two Explanations. Explanation 1 says a distribution under the clause "shall be fair and equitable to such creditors". Explanation 2 applies the clause, on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, to processes where a plan is not yet approved or rejected, an appeal is pending or not time barred, or a legal proceeding has begun against the decision on a plan. Clause (d) is printed without a verb ("the implementation and supervision of the resolution plan"); it is quoted as printed. An Explanation to clause (e) says that where shareholders' approval is required under the Companies Act, 2013 (18 of 2013) or any other law, "such approval shall be deemed to have been given and it shall not be a contravention of that Act or law." Check the current law for the corresponding provision.
Example. Reddy Textiles Limited has liquidation proceeds under section 53 that would give operational creditors Rs 4 crore. A plan offers them Rs 3 crore. Under clause (b) the resolution professional cannot confirm the plan unless the payment is not less than the higher of the two amounts the clause names.
If you are preparing a plan, or advising a committee on one, a financial and legal due diligence review of the numbers against these tests saves rework.
Sub-sections (3) to (6)
- (3) The resolution professional presents to the committee for approval "such resolution plans which confirm the conditions referred to in sub-section (2)".
- (4) The committee may approve a plan "by a vote of not less than sixty-six per cent. of voting share of the financial creditors, after considering its feasibility and viability, the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor and such other requirements as may be specified by the Board". Provisos deal with plans of an ineligible applicant submitted before the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017, a period not exceeding thirty days to pay overdue amounts under clause (c) of section 29A, and the Ordinance, 2018.
- (5) The resolution applicant may attend the committee meeting where his plan is considered, but has no vote "unless such resolution applicant is also a financial creditor".
- (6) The resolution professional "shall submit the resolution plan as approved by the committee of creditors to the Adjudicating Authority".
Approval by the Adjudicating Authority is section 31; see the live post on section 31. A broader guide to contents is in our post on resolution plans.
What the Amendment Act, 2026 changes
Section 18 of the Amendment Act, 2026 (No. 6 of 2026) amends sub-sections (2) and (4).
| Provision | As printed in the consolidated text | After the 2026 Act |
|---|---|---|
| (2)(b), long line | Includes "and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan ... liquidation of the corporate debtor" | That portion, from ", and provides for the payment of debts of financial creditors" to "liquidation of the corporate debtor", is omitted |
| New (2)(ba) | None | "provides for the payment of debts of the financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified, which shall not be less than the lower of the amount-- (i) to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or (ii) that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed, in accordance with the order of priority in sub-section (1) of section 53, as the case may be." |
| (ba) Explanation I | None | "For the removal of doubts, it is hereby clarified that a distribution in accordance with the provisions of this clause shall be fair and equitable to such creditors." |
| (ba) Explanation II | None | The sub-section as amended "shall not apply to the corporate insolvency resolution process where any of the following acts have first occurred,-- (i) the committee of creditors has approved a resolution plan under sub-section (4); (ii) the Adjudicating Authority has passed a liquidation order under sub-section (1) of section 33; or (iii) the committee of creditors has approved intimation to the Adjudicating Authority to initiate the liquidation under sub-section (2) of section 33, as the case may be, on and before the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2026" |
| (2)(d) | "the implementation and supervision of the resolution plan" | Substituted: "provides for the implementation and supervision of the resolution plan and constitution of a committee for this purpose consisting of a resolution professional or any other insolvency professional, representatives of a class or classes of creditors and the resolution applicant, subject to such conditions and in such manner as may be specified" |
| (4) | "...a vote of not less than sixty-six per cent. of voting share of the financial creditors, after considering..." | After "voting share of the financial creditors" the words "and record reasons for its approval" are inserted |
The old test for dissenting financial creditors is "not less than the amount ... in the event of a liquidation"; the new clause (ba) says "not less than the lower of" two amounts (see also our post on the dissenting financial creditor test). The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether these changes have been notified. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 carry the specified detail; the copy consulted is amended up to 09-06-2026 as printed under its title.
Need help with a resolution plan?
Plans fail on arithmetic and on eligibility more often than on commercial logic. Our financial and legal due diligence team can test a plan against the section 30(2) checklist, the section 53 comparison and the applicant's affidavit.
Key takeaways
- A plan is submitted with an affidavit of eligibility under section 29A.
- Sub-section (2) is the resolution professional's checklist: costs first, operational creditors' floor, management, implementation, legality and Board requirements.
- Approval needs not less than sixty-six per cent. of the voting share of financial creditors.
- The 2026 Act moves the dissenting financial creditors' floor to new clause (ba), substitutes clause (d) and adds "record reasons" to sub-section (4).
- Explanation II to new clause (ba) ties the changes to the date of commencement; check notification.
Read next
- Section 29: information memorandum
- Section 32A: liability for prior offences after approval of a plan
- Section 28: actions needing committee approval
- Section 5: related party, resolution applicant and resolution plan
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.