Role And Responsibilities Of An Interim Resolution Professional

  • Blog|Insolvency and Bankruptcy Code|
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  • By Taxmann
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  • Last Updated on 25 June, 2021

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Insolvency and bankruptcy code 2016 was passed in May 2016 to cater to ever increasing bad loan cases in India. The insolvency and bankruptcy code 2016 have a provision to appoint an interim resolution professional. The codes state the as per section 16 (3) (a) of the Insolvency and Bankruptcy Code 2016, the Adjudicating Authority can request the IBBI to recommend an insolvency professional who will act as interim resolution professional by submitting an application to corporate insolvency resolution process. The so appointed interim resolution professional shall take care of end to end disciplinary proceedings of the case. 

Section 16(1) of the Insolvency and Bankruptcy Code, 2016 requires Adjudicating Authority to appoint an interim resolution professional (IRP) within fourteen days from the insolvency commencement date. As the name suggests Interim resolution professional is appointed for a very short period not exceeding 30 days from the date of his appointment.
 
Section 18 of the Code prescribes Duties of Interim Resolution Professional as under:
1. The IRP shall have to collect all information relating to the assets, finances and operations of the corporate debtor for determining the financial position of the corporate debtor, including information relating to:

(i) business operations for the previous two years; (ii) financial and operational payments for the previous two years; (iii) list of assets and liabilities as on the initiation date; and   (iv) such other matters as may be specified;

2. The IRP shall receive and collate all the claims submitted by creditors to him pursuant to the public announcement made

3. IRP shall constitute a committee of creditors;

4. Further, the IRP shall monitor the assets of the corporate debtor and manage its operations until a resolution professional is appointed by the committee of creditors;

5.  The IRP shall file the information collected with the information utility, if necessary; and

6. The IRP shall take control and custody of any asset over which the corporate debtor has ownership rights as recorded in the balance sheet of the corporate debtor, or with information utility or the depository of securities or any other registry that records the ownership of assets including:

(i) assets over which the corporate debtor has ownership rights which may be located in a foreign country; (ii) assets that may or may not be in possession of the corporate debtor; (iii) tangible assets, whether movable or immovable; (iv) intangible assets including intellectual property; (v) securities including shares held in any subsidiary of the corporate debtor, financial instruments, insurance policies; (vi) assets subject to the determination of ownership by a court or authority;

7. It is obligatory on party of IRP to perform such other duties as may be specified by the Board.

 
To Know more on Interim Resolution Professional, buy Guide to Insolvency & Bankruptcy Code, 2016 from Taxmann’s bookstore.
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