Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

Role of Insolvency Professionals in Cross Border Insolvency Cases

Updated 11 October 2026 · Fact-checked

An insolvency professional (IP) takes the actions needed in any insolvency, liquidation or bankruptcy process under the IBC, and must follow the Section 208(2) code of conduct. IPs are enrolled with insolvency professional agencies, which the IBBI registers and regulates. You apply these rules to cases with foreign assets, creditors or proceedings.

Understand Role of Insolvency Professionals in Cross Border Cases

An insolvency professional is the person who actually runs an insolvency process. Under Section 208(1), once a process has started, the IP must take the actions needed in matters such as the corporate insolvency resolution process, the pre-packaged insolvency resolution process, liquidation of a corporate debtor, fresh start, individual insolvency resolution and individual bankruptcy.

The Code does not create a separate set of IP duties for cross border cases. The same Section 208 functions and code of conduct apply when the debtor has assets abroad, foreign creditors, or a parallel proceeding in another country. Foreign elements only add more facts to which you apply the same duties.

The IP does not work alone. An insolvency professional agency (IPA) enrols the IP as a member and monitors the IP. The Insolvency and Bankruptcy Board of India (the Board) registers IPAs, IPs and information utilities, and regulates them. Under Section 207, an IP must first become a member of an IPA and then register with the Board.

So think in three layers. The Board regulates. The IPA supervises its members. The IP performs the process and answers to both. In a cross border case, this chain tells you whom the IP must report to, whose inspection the IP must allow, and who can act if the IP falls short.

Remember that the Code, as supplied here, does not contain a full framework for dealing with foreign proceedings. Say so in answers on India's cross border position, and anchor the IP's role in Sections 208, 204, 196, 200, 201, 203 and 207.

Key rules to remember

Functions of an IP (Section 208(1)): IP takes necessary actions in: fresh start; individual insolvency resolution; CIRP; pre-packaged insolvency resolution process; individual bankruptcy; liquidation of a corporate debtor; Applies where the relevant process has been initiated. Section 208(1A) covers pre-initiation duties of the proposed resolution professional in a pre-pack.
Code of conduct (Section 208(2)): (a) reasonable care and diligence; (b) comply with IPA bye-laws; (c) allow IPA to inspect records; (d) submit copy of records of every proceeding before the Adjudicating Authority to the Board and the IPA; (e) perform functions as specified; Five duties. Clause (d) is often missed: records go to both the Board and the IPA.
Principles for registering an IPA (Section 200): Promote: (a) professional development and regulation of IPs; (b) competent IP services for debtors, creditors and others; (c) good professional and ethical conduct; (d) protect interests of debtors, creditors and others; (e) growth of IPAs for effective resolution; The Board must have regard to these five principles when registering IPAs.
Governing board of an IPA (Section 203): Board may make regulations on: (a) setting up the governing board; (b) minimum number of independent members; (c) number of IP members on it; The Board sets the structure by regulations. Do not quote fixed numbers.
Functions of an IPA (Section 204): Grant membership; lay down conduct standards; monitor members; safeguard members' interests; suspend or cancel membership per bye-laws; redress grievances against members; publish information; Seven functions in clauses (a) to (g).
Registration of IPA (Sections 199 and 201): No IPA without a Board certificate; application acknowledged within 7 days; rejection order only after hearing, communicated within 15 days; Board may suspend or cancel for false statement, non-compliance with regulations or bye-laws, or contravention of the Code, after a reasonable hearing and only by whole-time members.

How to solve Role of Insolvency Professionals in Cross Border Cases questions

Use this method for any question on the IP's role, including those with foreign elements. Keep to provision, analysis, conclusion.

1Identify the process: CIRP, pre-pack, liquidation, fresh start, individual insolvency or bankruptcy. Match it to a clause of Section 208(1).
2Pick out the foreign element: overseas assets, foreign creditors, a foreign proceeding, or a foreign parent. State that it does not change the IP's basic functions.
3State the relevant duty from Section 208(2): care and diligence, IPA bye-laws, inspection, records to the Board and IPA, specified manner.
4Name who supervises: the IPA under Section 204 and the Board under Section 196. Add Section 207 if registration is in issue.
5Apply the facts. Ask which duty was met or breached, for example whether records were filed with both the Board and the IPA.
6If the question is about the IPA, apply Sections 199, 200, 201 or 203 to the facts, including the hearing safeguards.
7Conclude in one clear line and add a practical compliance point, such as maintaining complete records of overseas steps.

Quickest way: Four-label scan

When to use it: Use when a case-based question gives many facts and little time.

Label the actor: IP, IPA or Board.
Label the section family: 208 for IP duties, 204 for IPA functions, 196 for Board, 200 to 203 for IPA registration and governing board, 207 for IP registration.
For IP conduct, run the five-point check of Section 208(2) against the facts.
Write the conclusion first in one sentence, then give the provision and the facts in support.

Common mistakes in Role of Insolvency Professionals in Cross Border Cases

Claiming that Section 208 has special duties for cross border cases.
The chapter title suggests a separate regime.
Fix: Say that the Section 208 functions and code of conduct apply equally, whatever foreign elements exist.
Saying records go only to the IPA.
Students recall inspection by the IPA and stop there.
Fix: Section 208(2)(d) requires a copy of records of every proceeding before the Adjudicating Authority to go to both the Board and the IPA.
Mixing up the roles of the Board and the IPA.
Both regulate IPs and the names sound alike.
Fix: The Board registers IPAs and IPs and sets standards. The IPA grants membership, monitors members and handles grievances against them.
Quoting fixed numbers for governing board composition.
Students try to add detail from memory.
Fix: Section 203 only lets the Board specify by regulations the minimum independent members and the number of IP members. Say that.
Saying an IP can act once registered with the Board alone.
Section 207 is skimmed.
Fix: An IP first obtains IPA membership, then registers with the Board within the specified time, manner and fee.
Forgetting the safeguards before cancelling an IPA's registration.
Students focus on the grounds only.
Fix: Add that a reasonable opportunity of being heard is required and that the order cannot be passed by any member other than a whole-time member.

Worked examples

Example 1

An IP is conducting the CIRP of Kaveri Textiles Ltd, an Indian company with a subsidiary's warehouse in Dubai. The IP completes steps in the Dubai matter but does not give the IPA a copy of the records of the proceedings before the Adjudicating Authority. Advise on the IP's position.

Show the solution

Provision: Section 208(1)(c) makes it the IP's function to take necessary actions in a CIRP. Section 208(2) sets the code of conduct.
Analysis: The Dubai asset is a foreign element, but it does not change the IP's duties. The code of conduct still applies in full.
Section 208(2)(d) requires the IP to submit a copy of the records of every proceeding before the Adjudicating Authority to the Board and to the IPA of which the IP is a member.
On the facts, the IP has not sent the copy to the IPA. The Board is also not mentioned, so that must be checked.
Conclusion: The IP has breached the code of conduct. The IP should file the records with both the Board and the IPA, and keep records of the Dubai steps as well.

Answer: The IP's duties are unchanged by the Dubai asset. Not submitting records to the IPA, and possibly the Board, breaches Section 208(2)(d). The IP should file them with both at once.

Example 2

Aarav Insolvency Forum applies to the Board for registration as an insolvency professional agency. The Board rejects the application without a hearing. Is this valid? Also state what the Board looks to when registering.

Show the solution

Provision: Section 201(2) lets the Board grant a certificate or reject the application by order. The first proviso says no rejection order may be made without giving the applicant an opportunity of being heard.
Analysis: The Board rejected the application without a hearing. That breaches the proviso.
Section 201 also requires the order to be communicated to the applicant within fifteen days. Section 199 bars anyone from acting as an IPA without the Board's certificate.
On registration principles: Section 200 requires the Board to have regard to promoting professional development and regulation of IPs, competent IP services, good ethical conduct, protection of debtors' and creditors' interests, and growth of IPAs.
Conclusion: The rejection is not valid as made.

Answer: The rejection is invalid because the applicant was not heard, as Section 201(2) requires. The Board must follow the Section 200 principles and communicate any order within fifteen days.

Exam tips

Write the section number with each duty. Examiners reward Section 208(2) clauses stated correctly.
In case questions, name the foreign element, then say plainly that the IP's duties stay the same.
Keep the Board, IPA and IP separate in every answer. A short three-line hierarchy often earns marks.
Do not invent fixed numbers for governing board members. Use the Section 203 wording.
Finish with a practical compliance point, such as timely filing of records with the Board and IPA.

Practice questions from Cross Border Insolvency

Role of Insolvency Professionals in Cross Border Cases: frequently asked questions

What does Section 208 of the IBC say about insolvency professionals?

Section 208(1) says that where an insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, the IP must take the necessary actions in the listed processes. Section 208(2) lays down five code of conduct duties, including reasonable care and diligence and compliance with the IPA's bye-laws.

Do insolvency professionals have different duties in cross border cases?

The Code text supplied does not give separate IP duties for cross border cases. The Section 208 functions and code of conduct apply as they do in any case. Foreign elements only change the facts you apply them to.

What is the role of the governing board of an insolvency professional agency under Section 203?

Section 203 lets the Board make regulations on setting up the governing board of an IPA. The regulations may specify the minimum number of independent members and the number of IPs who are members on that board.

Who registers insolvency professional agencies and on what principles?

The Board registers them, and no one may act as an IPA without its certificate. Under Section 200, the Board has regard to five principles, including promoting professional development, ethical conduct, and protecting the interests of debtors and creditors.