Interim Resolution Professional (IRP) is the insolvency professional first appointed by the NCLT upon admission of a corporate insolvency application, who takes charge of the corporate debtor's affairs, constitutes the Committee of Creditors, and manages the resolution process until a Resolution Professional is formally appointed by the CoC. Under Indian law, the appointment and duties of the IRP are governed by Sections 16 and 17 of the Insolvency and Bankruptcy Code, 2016.
Legal definition
Section 16(1) of the Insolvency and Bankruptcy Code, 2016 provides:
The Adjudicating Authority shall appoint an interim resolution professional on the insolvency commencement date.
The appointment mechanism depends on who files the insolvency application:
- Financial creditor (Section 7): The insolvency professional proposed in the application is appointed as IRP, provided no disciplinary proceedings are pending against them.
- Operational creditor (Section 9): If no proposal is made, the NCLT makes a reference to IBBI for recommendation.
- Corporate debtor (Section 10): The insolvency professional proposed in the application is appointed as IRP.
Section 17 provides that from the date of appointment, the management of affairs of the corporate debtor shall vest in the IRP:
The management of affairs of the corporate debtor shall vest in the interim resolution professional from the date of appointment of the interim resolution professional.
Section 18 enumerates the IRP's duties: collect information relating to the assets, finances and operations of the corporate debtor; receive and collate all claims submitted by creditors; constitute the committee of creditors; monitor the assets of the corporate debtor; and manage the corporate debtor's operations until a resolution professional is appointed.
The IRP's tenure is limited to 30 days from the date of appointment, within which the CoC must be constituted and the first meeting held.
How courts have interpreted this term
Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407
The Supreme Court, in one of the earliest landmark IBC decisions, addressed the role of the IRP and the immediate vesting of management in the IRP upon admission of the insolvency application. The Court upheld the constitutional validity of the IBC framework and clarified that the transfer of management to the IRP is automatic upon the insolvency commencement date — the existing directors and management lose their powers to manage the company's affairs.
Arcelormittal India Pvt. Ltd. v. Satish Kumar Gupta (2019) 2 SCC 1
The Supreme Court discussed the IRP's initial duties including the collection of information about the corporate debtor's financial position, the collation of claims, and the constitution of the CoC. The Court emphasised that the IRP must act with speed and efficiency given the tight 30-day timeline, as delays in constituting the CoC directly impact the 180-day CIRP timeline.
Why this matters
The IRP occupies a critical transitional role in the CIRP. The period between the insolvency commencement date and the first meeting of the CoC is often the most precarious phase of the insolvency process — the existing management has been displaced, the moratorium has been imposed, and the corporate debtor's stakeholders are uncertain about the future. The IRP must stabilise the situation by taking control of assets, ensuring business continuity, and quickly constituting the CoC to enable the formal resolution process to commence.
For practitioners, the IRP's role is time-bound but intensive. Within 30 days, the IRP must take custody of all assets and records, verify and collate all creditor claims, prepare a report on the corporate debtor's financial position, constitute the CoC, and convene its first meeting. The first CoC meeting then decides whether to confirm the IRP as the Resolution Professional or replace them with a different insolvency professional.
A practical consideration is that the IRP's appointment is proposed by the applicant (in Section 7 and 10 applications), raising questions about the IRP's independence. The Code addresses this by giving the CoC the power to replace the IRP at its first meeting. In practice, CoCs replace the IRP in a significant proportion of cases, particularly where the IRP was proposed by the corporate debtor.
Related terms
Successor role:
Broader process:
Key stakeholders:
Frequently asked questions
How long does the IRP serve?
The IRP serves for a maximum of 30 days from the date of appointment. At the first meeting of the CoC, which must be held within this period, the CoC decides whether to confirm the IRP as the Resolution Professional or replace them with another insolvency professional.
Can the IRP be replaced?
Yes. The CoC has the absolute right to replace the IRP at its first meeting under Section 22 of the IBC. The replacement does not require any finding of misconduct — the CoC may simply prefer a different insolvency professional. The replacement requires a vote of 66% of the voting share.
What powers does the IRP have over the company's management?
Under Section 17, the management of the corporate debtor vests entirely in the IRP from the date of appointment. The existing directors and key managerial personnel lose their management powers, though they are required to cooperate with the IRP and provide all information and records. The IRP exercises all powers that the board of directors would normally exercise.
Can the IRP take actions beyond day-to-day management?
The IRP can take actions necessary for managing the corporate debtor's operations and preserving its assets. However, significant actions such as raising interim finance, creating security interests, or transferring rights require the approval of the CoC under Section 28, which may not be available until the CoC is constituted.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.