Quick answer: A resolution professional under IBC runs the insolvent company during CIRP. The interim resolution professional (IRP) takes over management, collects claims and forms the committee of creditors. The CoC then confirms or replaces the IRP as resolution professional (RP) by a 66% vote. The RP invites resolution plans but cannot adjudicate disputed claims.
Once the NCLT admits an insolvency petition, the promoters lose control on day one. A resolution professional under IBC steps in to run the company, protect its assets and steer the corporate insolvency resolution process (CIRP). Lenders must know where its powers stop.
Who Is a Resolution Professional Under IBC?
An insolvency professional registered with the IBBI acts in two roles. First, the NCLT appoints an interim resolution professional under Section 16 when it admits the petition. Next, the committee of creditors (CoC) decides at its first meeting under Section 22. It either confirms the IRP as the resolution professional or names a new one, by a 66% vote.
In 2025, the Madras High Court held in K.J. Vinod v. Registrar, NCLT that the NCLT should normally appoint the proposed IRP. The exception is where disciplinary proceedings are pending against that person.
Powers and Duties of the IRP and RP: Step by Step
The IBC lists the core powers in Sections 17, 18 and 25. In practice, the work runs in this order:
- Take over management: The board’s powers stand suspended under Section 17. Officers report to the IRP, and banks follow its instructions on the company’s accounts.
- Secure the assets: Under Section 18(f), the IRP takes control and custody of the debtor’s assets, including foreign and intangible assets.
- Collect information: The IRP gathers financial and operational records, including data from information utilities.
- Collate and verify claims: A new Explanation to Section 18(b), in force from 26 May 2026, says the IRP must verify claims and, where needed, value them.
- Form the CoC: The IRP constitutes the committee of creditors from the admitted financial creditors.
- Run the business as a going concern: Under Section 25, the RP keeps operations running and appoints valuers and advisers.
- Invite and test resolution plans: The RP issues the information memorandum, checks plans for compliance and places them before the CoC.
Each step runs against the CIRP timeline under IBC.
IRP vs RP: Key Differences
- Appointed by: the NCLT appoints the IRP; the CoC appoints the RP.
- Stage: the IRP acts until the first CoC meeting; the RP acts from then until plan approval or liquidation.
- Decisions: the IRP mostly acts alone; the RP needs CoC approval for major steps under Section 28.
Limits on the Resolution Professional’s Powers
The RP manages the process but does not judge disputes, and the CoC controls who holds the office.
Key case law
- Claim admission is not adjudication (Supreme Court, June 2026): In a dispute over DHFL claims later assigned to Omkara ARC, the Court held that an RP’s admission of a claim is administrative. It neither decides liability nor counts as the debtor’s acknowledgment of debt.
- Amit Nehra v. Pawan Kumar Garg (SC, 2025): Once the RP verified and admitted a claim, nobody could later treat it as belated to deny relief under the plan.
- Sumat Kumar Gupta v. CoC of Vallabh Textiles (NCLAT, 2022): The outgoing RP has no right to a hearing before the NCLT approves a replacement under Section 27.
- Bikram Bhadur v. CoC of Beoworld (NCLAT, 2025): A functioning CoC may replace the RP by the required majority, even while a challenge to its constitution remains pending.
What Banks and NBFCs Should Do
Lenders hold most CoC votes, so they shape the RP’s work. Therefore, review the proposed IRP’s record before filing. Next, track claim verification closely, because the RP’s admission now carries weight under the plan. Finally, use Section 27 if the RP stalls or acts unfairly. Our IBC and NCLT lawyers in Delhi regularly advise lenders on these steps.
FAQs on the Resolution Professional Under IBC
What is the role of a resolution professional under IBC?
The RP manages the corporate debtor during CIRP, verifies claims, runs the CoC process and invites resolution plans. It also keeps the company running as a going concern.
What is the difference between an IRP and an RP?
The NCLT appoints the IRP at admission. The CoC then confirms that person or appoints a new RP, who runs the rest of the CIRP.
Can the committee of creditors replace the resolution professional?
Yes. Under Section 27, the CoC can replace the RP by a 66% vote. The NCLT then confirms the new appointment after the IBBI’s check.
Can a resolution professional decide disputed claims?
No. The RP only verifies and admits claims. A creditor who disagrees can apply to the NCLT under Section 60(5).
Who pays the resolution professional’s fees?
The RP’s fees form part of the insolvency resolution process costs. These costs rank first for payment under a resolution plan.
Lex Pleaders advises banks, NBFCs and businesses on CIRP strategy, CoC decisions and resolution professional disputes before the NCLT and NCLAT. As a law firm in Delhi NCR, we act for lenders throughout. Write to us at lexpleadersindia@gmail.com to discuss your matter.
Disclaimer: This article offers general information only and does not constitute legal advice.