Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

Interim Resolution Professional: Appointment and Duties under IBC

Updated 11 October 2026 · Fact-checked

The interim resolution professional (IRP) is an insolvency professional appointed by the Adjudicating Authority on the insolvency commencement date. The IRP takes over the debtor's management, collects information, collates claims, constitutes the committee of creditors and runs the business until a resolution professional is appointed under section 22.

Understand Interim Resolution Professional: Appointment and Duties

When the Adjudicating Authority admits an application for the corporate insolvency resolution process (CIRP), someone must take charge of the company at once. The board is suspended, but the company cannot be left without management. That person is the interim resolution professional (IRP). The IRP is a bridge between admission and the first meeting of the committee of creditors.

Under section 16, the Adjudicating Authority appoints the IRP on the insolvency commencement date. If a financial creditor (section 7) or the corporate debtor (section 10) files the application, the professional proposed in the application is appointed, provided no disciplinary proceedings are pending against him. If an operational creditor files and proposes a professional under section 9(4), the same rule applies. If the operational creditor proposes nobody, the Adjudicating Authority refers the matter to the Board (IBBI), which must recommend a name within ten days, again of a professional with no disciplinary proceedings pending.

From the appointment date, under section 17, the management of the affairs of the debtor vests in the IRP. The powers of the board of directors or partners stand suspended and are exercised by the IRP. Officers and managers report to the IRP and give access to documents and records. Banks act on the IRP's instructions for the debtor's accounts and give all information. The IRP signs deeds, receipts and documents in the debtor's name, can access records from an information utility and from government authorities, auditors and accountants, and is responsible for complying with all laws on the debtor's behalf.

Section 18 lists the duties. The IRP collects information on assets, finances and operations (including business operations and payments for the previous two years and the list of assets and liabilities as on the initiation date), receives and collates claims after the public announcement, constitutes the committee of creditors, monitors the assets and manages operations until a resolution professional is appointed, files information with the information utility if necessary, and takes control and custody of the assets the debtor owns. The assets exclude assets held by the debtor for third parties under trust or contract (such as bailment) and assets of any Indian or foreign subsidiary.

The IRP's term continues until the resolution professional is appointed under section 22 (section 16(5)). The first CoC meeting is held within seven days of the CoC's constitution. By a vote of not less than 66% of the voting share of financial creditors, the CoC either confirms the IRP as resolution professional or replaces him. So the IRP and the RP may be the same person; they differ in the stage and in who appoints them.

Key rules to remember

Appointment of IRP: Adjudicating Authority appoints IRP on the insolvency commencement date (s.16(1)); Section 7 or 10 application: the proposed professional is appointed. Section 9 application: the one proposed under s.9(4), else a reference to the Board. In each case only if no disciplinary proceedings are pending.
Board's recommendation time: Board recommends a name within 10 days of the reference (s.16(4)); Applies where an operational creditor makes no proposal.
Term of IRP: Continues till the date of appointment of the RP under section 22 (s.16(5)); The old 30-day limit was removed in 2018.
Effect on management: Management vests in IRP; board powers suspended (s.17(1)); Officers report to the IRP, and banks follow the IRP's instructions on accounts.
Duties of IRP: s.18: collect information, collate claims, constitute CoC, monitor assets and run operations, file with information utility if necessary, take custody of assets; Excludes third-party assets held under trust or bailment, and subsidiaries' assets.
First CoC meeting and RP decision: First meeting within 7 days of CoC constitution; vote of not less than 66% of financial creditors' voting share (s.22); The CoC either continues the IRP as RP or replaces him.
Replacement of IRP: CoC applies to the Adjudicating Authority; name sent to the Board; if the Board does not confirm within 10 days, the IRP continues (s.22(4)-(5)); The written consent of the proposed professional is required.

How to solve Interim Resolution Professional: Appointment and Duties questions

Use this order for any question on the IRP. It keeps your answer in the provision, analysis, conclusion format.

1Identify the stage: admission, before the CoC, or the first CoC meeting. This decides whether the person is IRP or RP.
2Identify who filed the application (section 7, 9 or 10). This decides how the IRP is chosen.
3State the appointment rule from section 16 and check the disciplinary proceedings condition.
4State the effect on management under section 17: board suspended, officers report, banks follow instructions.
5Match each fact in the question to a section 18 duty, such as claims, CoC, custody of assets or information collection.
6Check any asset in the facts against the Explanation to section 18 (third-party assets, subsidiaries).
7Apply section 22 if the question asks what happens next: the 66% vote, replacement and the Board's confirmation.
8Write a one-line conclusion that answers the exact question asked.

Quickest way: Four-box IRP answer

When to use it: Use it when you have little time for a short-note or a 'discuss the role of IRP' question.

Box 1, Appointment: s.16, on the insolvency commencement date, proposed professional or Board reference.
Box 2, Management: s.17, board suspended, IRP acts in the debtor's name and complies with laws.
Box 3, Duties: s.18, information, claims, CoC, operations, assets.
Box 4, End of role: continues till RP appointed under s.22, first CoC meeting within 7 days, 66% vote.

Common mistakes in Interim Resolution Professional: Appointment and Duties

Saying the IRP is appointed for a fixed 30 days.
Older books and notes carry the original wording.
Fix: Write that the term continues till the RP is appointed under section 22.
Saying the IRP is always chosen by the creditors.
Students mix up the IRP with the RP.
Fix: The Adjudicating Authority appoints the IRP. The CoC takes a decision only at the RP stage.
Forgetting the 'no disciplinary proceedings pending' condition.
It sits in a short phrase of the section.
Fix: Add it to every appointment answer and mention the Board's 10-day recommendation under s.16(4).
Including subsidiary assets or third-party assets in the IRP's custody.
Students read 'all assets' loosely.
Fix: Quote the Explanation to section 18: trust or bailment assets and subsidiaries' assets are not included.
Saying the CoC replaces the IRP by simple majority.
Students forget the voting threshold.
Fix: State not less than 66% of the voting share of financial creditors in the first meeting.
Thinking the IRP can ignore compliance because the board is suspended.
Students focus on the suspension of directors.
Fix: Section 17(2)(e) makes the IRP responsible for complying with the requirements of any law on the debtor's behalf.

Worked examples

Example 1

Mehta Textiles Ltd's financial creditor files an application under section 7 and proposes Mr Rao as the IRP. The application is admitted. No disciplinary proceedings are pending against Mr Rao. Who appoints the IRP, and what happens to the board of directors?

Show the solution

Provision: under section 16(1), the Adjudicating Authority appoints the IRP on the insolvency commencement date.
Under section 16(2), for a section 7 application the professional proposed in the application is appointed if no disciplinary proceedings are pending.
Facts: Mr Rao is proposed and has no pending proceedings, so he qualifies.
Effect: under section 17(1), management of Mehta Textiles vests in Mr Rao and the powers of the board stand suspended, to be exercised by him.
Officers and managers must report to him and give access to records, and the banks must act on his instructions on the accounts.

Answer: The Adjudicating Authority appoints Mr Rao as IRP on the insolvency commencement date. The board's powers are suspended and the management vests in him.

Example 2

An operational creditor files a section 9 application against Kaveri Foods Pvt Ltd and proposes no professional. The application is admitted. Explain how the IRP is appointed. Then state how the IRP can stop being the IRP-turned-RP at the first CoC meeting.

Show the solution

Provision: section 16(3)(a) says that where no proposal is made, the Adjudicating Authority makes a reference to the Board for recommending an insolvency professional.
Under section 16(4), the Board must recommend a name within ten days of the reference. The professional must have no disciplinary proceedings pending.
The Adjudicating Authority then appoints that person as IRP.
The IRP constitutes the CoC, and its first meeting is held within seven days of constitution (section 22(1)).
Under section 22(2), the CoC, by not less than 66% of the voting share of financial creditors, can either appoint the IRP as RP or replace him.
If it replaces him, it files an application before the Adjudicating Authority with the written consent of the proposed professional. The name goes to the Board for confirmation (section 22(3)-(4)).
If the Board does not confirm within ten days, the IRP continues as RP until confirmation (section 22(5)).

Answer: The IRP is chosen through a reference to the Board, which recommends a name within ten days. At the first CoC meeting, 66% of the financial creditors' voting share can continue the IRP as RP or replace him, subject to the Board's confirmation of the new name.

Exam tips

Write the section numbers 16, 17, 18 and 22 in every answer. Examiners look for the provision first.
In case-based questions, name who filed the application before you say who is appointed as IRP.
Use the Explanation to section 18 when a fact mentions leased, trust or subsidiary assets.
For 'difference between IRP and RP', compare appointer, stage, term and the CoC's role in a short two-column style using bullet lines.
End each answer with a clear conclusion, not only the provision.

Practice questions from Role, Functions and Duties of IP, IRP and RP

Interim Resolution Professional: Appointment and Duties: frequently asked questions

Who appoints the interim resolution professional under IBC?

The Adjudicating Authority appoints the IRP on the insolvency commencement date. It normally appoints the professional proposed in the application, and if none is proposed in a section 9 case, it takes a recommendation from the Board.

What is the difference between IRP and RP?

The IRP is appointed by the Adjudicating Authority at admission and serves until the RP is appointed. The RP is confirmed or chosen by the CoC at its first meeting by a vote of not less than 66% of financial creditors' voting share. The RP may be the same person as the IRP.

Can the IRP be removed by the committee of creditors?

Yes, in the first meeting the CoC can replace the IRP by a vote of not less than 66% of the voting share of financial creditors. The replacement needs an application to the Adjudicating Authority and the Board's confirmation of the proposed name.

What happens to the directors once the IRP is appointed?

The board's powers stand suspended and are exercised by the IRP. The officers and managers report to the IRP and must give access to documents and records.