IRP (Interim Resolution Professional)

Understanding the Role of the Interim Resolution Professional Under IBC

The moment the NCLT admits a Corporate Insolvency Resolution Process, an Interim Resolution Professional (IRP) is appointed to take control of the corporate debtor's affairs, replacing the suspended board of directors. The IRP's actions in the first weeks of CIRP set the foundation for the entire resolution process.

We support insolvency professionals acting as IRPs, and advise creditors and corporate debtors on their rights and obligations during this critical initial phase, including asset preservation, claims collation, and formation of the Committee of Creditors.

Our IRP-Related Advisory Services

Public Announcement & Claims Collation

Managing the public announcement process and collating claims received from financial and operational creditors.

Committee of Creditors Constitution

Verifying claims and constituting the Committee of Creditors based on admitted financial creditor claims.

Asset Preservation & Management

Taking custody of the corporate debtor's assets and ensuring the business continues as a going concern during CIRP.

Information Memorandum Preparation

Compiling the information memorandum used by prospective resolution applicants to evaluate the corporate debtor.

Support to Suspended Board & Employees

Coordinating with the erstwhile management and employees to ensure operational continuity during the interim period.

Regulatory Filings & Compliance

Ensuring all IBBI-mandated filings, forms, and disclosures are completed within the applicable timelines.

Key Responsibilities of an IRP

Take custody and control of all assets of the corporate debtor over which it has ownership rights
Make a public announcement inviting claims from creditors within three days of appointment
Collate claims and constitute the Committee of Creditors based on verified financial creditor claims
Manage the operations of the corporate debtor as a going concern during the interim period
Convene the first meeting of the Committee of Creditors within seven days of its constitution
Act as an agent of the Committee of Creditors once a Resolution Professional is appointed or confirmed

Frequently Asked Questions

Who appoints the Interim Resolution Professional?

The IRP is proposed by the applicant creditor (or, for a Section 10 application, jointly by the corporate debtor and its financial creditors), and is formally appointed by the NCLT in its order admitting the CIRP application, following which the IRP takes over management of the corporate debtor immediately.

What happens to the board of directors when an IRP is appointed?

Upon appointment of the IRP, the powers of the board of directors of the corporate debtor stand suspended and are vested in the IRP, who manages the operations of the corporate debtor as a going concern, though officers and managers can be directed to assist and report to the IRP.

How long does the IRP remain in charge before a Resolution Professional is confirmed?

The IRP's role generally continues until the first meeting of the Committee of Creditors, at which the Committee either confirms the IRP as the Resolution Professional or replaces them with another insolvency professional, which typically happens within about 30 days of the CIRP commencement date.

What is an information memorandum and why does the IRP prepare it?

The information memorandum is a confidential document compiling financial, operational, and legal information about the corporate debtor, prepared so that prospective resolution applicants can evaluate the business and formulate a viable resolution plan, and it must be shared under confidentiality undertakings.

Can creditors challenge claims collated by the IRP?

Yes, if a creditor disagrees with the verification or admission of claims, they can raise the issue before the IRP or Resolution Professional in the first instance, and if unresolved, approach the NCLT, which retains jurisdiction to adjudicate disputes arising during the CIRP.

Guidance Through the Interim Resolution Process

We support IRPs, creditors, and corporate debtors through the critical early stages of the CIRP process.

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