Priyanshi Garg
Quick Summary
Introduction When a company slides into financial distress, Indian law no longer leaves its fate to a slow, litigation-heavy winding-up process. Under the Insolvency and Bankruptcy Code, 2016 (IBC), the moment a Corporate Insolvency Resolution Process (CIRP) is triggered, control of the company pas
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FAQ :
The Resolution Professional (RP) is responsible for conducting the entire corporate insolvency resolution process and managing the operations of the corporate debtor throughout the CIRP period, acting as an independent, regulator-recognised professional.
An Interim Resolution Professional (IRP) is initially appointed, and the Committee of Creditors (CoC) at its first meeting decides whether to continue with the IRP as the Resolution Professional or replace them with someone else.
The RP's powers include taking custody of company assets, managing operations as a going concern, constituting the Committee of Creditors, convening meetings, evaluating and presenting resolution plans, and accessing company records.
The RP has a fiduciary duty to preserve and protect the assets of the corporate debtor, including its business as a going concern, and to represent the corporate debtor in legal proceedings.
Recent regulatory developments include refined procedures for CoC decisions on RP appointments, amendments to RP duties under Section 25 of the IBC, updated empanelment guidelines, and a focus on transparency and disclosure standards.
Yes, the actions of an RP are subject to scrutiny by the Adjudicating Authority, the National Company Law Appellate Tribunal, and the Supreme Court to ensure they are exercised strictly within the confines of the Code.
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