Resolution professional
Also called: RP, Interim resolution professional, IRP
An insolvency professional appointed to conduct the corporate insolvency resolution process, including an interim resolution professional. Section 5(27) of the IBC, 2016; Section 79(21) gives the meaning for individuals.
Explained
Section 5(27) of the Insolvency and Bankruptcy Code, 2016 provides that, for Part II, a resolution professional means an insolvency professional appointed to conduct the corporate insolvency resolution process or the pre-packaged insolvency resolution process, and includes an interim resolution professional. For Part III, Section 79(21) defines a resolution professional as an insolvency professional appointed for conducting the fresh start process or insolvency resolution process of individuals and partnership firms. An insolvency professional under Section 3(19) is a person enrolled with an insolvency professional agency and registered with the Insolvency and Bankruptcy Board of India.
In a corporate process, the Adjudicating Authority appoints an interim resolution professional under Section 16 on the insolvency commencement date. Where a financial creditor applies under Section 7, it must name a proposed resolution professional, who is appointed as interim resolution professional if no disciplinary proceedings are pending against him. From that appointment, Section 17 vests the management of the corporate debtor in the interim resolution professional and suspends the powers of the board of directors. At its first meeting, the committee of creditors may, by at least sixty six per cent of the voting share, continue the interim resolution professional as resolution professional or replace him (Section 22).
Under Sections 23 and 25 the resolution professional conducts the entire process, manages the corporate debtor as a going concern, takes custody of its assets, invites prospective resolution applicants, prepares the information memorandum and places resolution plans before the committee of creditors after examining them under Section 30(2). He cannot take certain major actions, such as raising interim finance beyond the limit set or creating security interests, without the committee's prior approval under Section 28.
The resolution professional is a facilitator, not an adjudicator. In Swiss Ribbons v. Union of India the Supreme Court held that he has administrative rather than quasi judicial powers, for example in verifying claims, and the commercial decision on a plan rests with the committee of creditors. Examiners test who appoints the IRP and RP, the voting threshold for replacement and the effect of Section 17.
What the law says
(27) “resolution professional”, for the purposes of this Part, means an insolvency professional appointed to conduct the corporate insolvency resolution process [or the pre-packaged insolvency resolution process, as the case may be,] and includes an interim resolution professional; and
Section 5(27) defines resolution professional for Part II
(21) “resolution professional” means an insolvency professional appointed under this part as a resolution professional for conducting the fresh start process or insolvency resolution process;
Section 79(21) defines resolution professional for Part III
(1) The Adjudicating Authority shall appoint an interim resolution professional [on the insolvency commencement date].
[(2) Where the application for corporate insolvency resolution process is made by a financial creditor, the resolution professional, as proposed in the application under section 7, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him.]
(3) Where the application for corporate insolvency resolution process is made by an operational creditor and—
Appointment of the interim resolution professional
(1) From the date of appointment of the interim resolution professional,—
(a) the management of the affairs of the corporate debtor shall vest in the interim resolution professional;
(b) the powers of the board of directors or the partners of the corporate debtor, as the case may be, shall stand suspended and be exercised by the interim resolution professional;
Management of the corporate debtor vests in the IRP
(2) The committee of creditors, may, in the first meeting, by a majority vote of not less than [sixty-six] per cent. of the voting share of the financial creditors, either resolve to appoint the interim resolution professional as a resolution professional or to replace the interim resolution professional by another resolution professional.
(3) Where the committee of creditors resolves under sub-section (2)—
(a) to continue the interim resolution professional as resolution professional, [subject to a written consent from the interim resolution professional in the specified form] [such person shall be deemed to be appointed as the resolution professional from the date of such resolution, and this decision shall be communicated to the interim resolution professional, the corporate debtor, and the Board]; or
Committee of creditors appoints or replaces the RP
(1) It shall be the duty of the resolution professional to preserve and protect the assets of the corporate debtor, including the continued business operations of the corporate debtor.
(2) For the purposes of sub-section (1), the resolution professional shall undertake the following actions, namely:—
(a) take immediate custody and control of all the assets of the corporate debtor, including the business records of the corporate debtor;
Duties of the resolution professional
For the exam
- Section 5(27) IBC: includes the interim resolution professional; Section 79(21) covers Part III.
- Adjudicating Authority appoints the IRP on the insolvency commencement date (Section 16).
- Board of directors' powers are suspended and vest in the IRP (Section 17).
- CoC may confirm or replace the IRP by 66 per cent of voting share (Section 22).
- RP has administrative, not adjudicatory, powers: Swiss Ribbons v. Union of India (2019).
43 questions in the Law Maker question bank use this term. Practise Insolvency and Bankruptcy Code questions
Judgments
Related terms
- Corporate debtorUnder Section 3(8) of the Insolvency and Bankruptcy Code, 2016, a corporate person who owes a debt to any person.
- Financial creditorUnder Section 5(7) of the IBC, any person to whom a financial debt is owed, including a person to whom such debt has been legally assigned or transferred.
- Operational creditorA person to whom an operational debt is owed, including an assignee or transferee of that debt (Section 5(20) of the Insolvency and Bankruptcy Code, 2016).
- Resolution planA plan proposed by a resolution applicant for insolvency resolution of the corporate debtor as a going concern in accordance with Part II of the Insolvency and Bankruptcy Code, 2016 (Section 5(26)).
- Financial debtA debt, with interest if any, disbursed against the consideration for the time value of money, including the items listed in Section 5(8) of the Insolvency and Bankruptcy Code, 2016.
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.