Interim Resolution Professional (IRP) Services
Expert Support Under the Insolvency and Bankruptcy Code
Section 15 public announcement, claims collection and verification, registered valuer appointment, asset preservation and Section 21 CoC constitution — the compressed 30-day window that shapes the entire insolvency outcome.
Overview
What Is an Interim Resolution Professional and Why Is This Role Critical Under the IBC?
When a company can no longer meet its financial obligations, the first critical step in the insolvency process is the appointment of a qualified professional who can take immediate charge. The Interim Resolution Professional serves as the bridge between the moment an insolvency application is admitted by the NCLT and the point where the Committee of Creditors takes strategic control of the resolution process. Without an effective IRP, the initial days of insolvency proceedings risk descending into chaos — assets can be dissipated, records can be lost, and creditor interests can be compromised before the formal process even begins.
N D Savla & Associates provides comprehensive support to Interim Resolution Professionals, creditors, and corporate debtors during this critical initial phase. Our team works alongside insolvency professionals to ensure that every procedural requirement under the IBC is met precisely and on time. Whether you need assistance with claims verification, public announcements, or the formation of the CoC, our firm brings the financial expertise and regulatory knowledge required to keep the process on track. We also support clients through related insolvency and bankruptcy matters at the NCLT and broader insolvency advisory services.
Every engagement starts with an assessment of the corporate debtor's financial position, followed by a clear plan of action that prioritises asset preservation, creditor communication, and regulatory compliance. We do not treat IRP support as a procedural formality — we treat it as the foundation on which the entire insolvency outcome depends.
The IRP's appointment triggers an automatic moratorium under Section 14 of the IBC, which prohibits all legal proceedings, asset transfers, and recovery actions against the corporate debtor. During this protected period, the IRP assumes full management control — replacing the board of directors — and is responsible for protecting the company's assets, maintaining business operations as a going concern, inviting claims from all classes of creditors through a public announcement, and constituting the Committee of Creditors based on verified financial claims.
The role is time-bound by design. The IRP has a maximum of 30 days to complete these foundational tasks. This compressed timeline reflects the IBC's overarching philosophy that insolvency proceedings should be conducted swiftly and efficiently, without unnecessary delay that could erode the value of the corporate debtor's assets.
Who It Applies To
Who Needs Interim Resolution Professional Services in India?
The IRP phase of insolvency proceedings involves multiple stakeholders, each with distinct needs and responsibilities. Professional advisory support is essential for every party involved.
Financial Creditors Filing Under Section 7
Banks and financial institutions that have extended credit to a defaulting borrower initiate the insolvency process by filing an application under Section 7 of the IBC. The application itself must propose an IRP for appointment by the NCLT. Financial creditors need advisory support to identify a qualified insolvency professional, prepare the application with the required documentation, and coordinate with the IRP once appointed. Our firm assists creditors through the entire process, including preparation of demand notices and application filing.
Operational Creditors Filing Under Section 9
Suppliers, vendors, and service providers who are owed money by the corporate debtor can also initiate insolvency proceedings. Operational creditors must first serve a demand notice under Section 8, wait for the statutory 10-day response period, and then file an application under Section 9 if the debt remains unpaid and undisputed. The operational creditor proposes the IRP in their application, and professional guidance is critical to ensure the notice and application are procedurally sound.
Corporate Debtors Filing Under Section 10
A company that recognises its own inability to pay debts can voluntarily initiate the CIRP by filing under Section 10. The corporate debtor proposes its own IRP candidate. This route requires careful preparation — the application must include the company's books of account, a special resolution of shareholders or a board resolution, and other financial records. Alternatively, companies that wish to wind down operations without going through CIRP may consider voluntary liquidation as an alternative path.
Insolvency Professionals Seeking Financial Advisory Support
Registered insolvency professionals appointed as IRPs frequently need chartered accountancy support for claims verification, financial statement preparation, asset valuation, and regulatory filings. N D Savla & Associates provides back-office and front-office support to IRPs and Resolution Professionals throughout the insolvency lifecycle.
How It Evolved
How Has the Role of the Interim Resolution Professional Evolved in India?
The concept of an Interim Resolution Professional did not exist in Indian law before the Insolvency and Bankruptcy Code was enacted in 2016. Understanding the historical context helps explain why this role was created and how it has developed over the years.
The Pre-IBC Era (Before 2016)
Before the IBC, India had no equivalent of an IRP. When companies became financially distressed, they were dealt with under the Sick Industrial Companies Act (SICA), 1985, through the Board for Industrial and Financial Reconstruction (BIFR). The BIFR process was notoriously slow, often stretching over decades with no meaningful resolution. Company management typically remained in control even after a company was declared sick, which created perverse incentives — promoters could continue running the business while creditors waited indefinitely for recovery. There was no mechanism for an independent professional to step in and protect stakeholder interests during the initial stages of financial distress.
The Post-Liberalisation Gap (1991 to 2016)
The 1991 economic liberalisation opened up the Indian economy but did not reform the insolvency framework. Multiple laws governed different aspects of debt recovery — the Recovery of Debts Due to Banks Act (1993), the SARFAESI Act (2002), and the winding up provisions of the Companies Act. None of these provided for the appointment of an independent professional to manage the debtor during the initial phase of distress resolution. The result was a fragmented, slow, and creditor-unfriendly system. India consistently ranked among the worst countries globally for resolving insolvency, with recovery rates below 26 cents on the dollar and resolution timelines averaging over four years.
The IBC Framework and the Creation of the IRP Role (2016 Onwards)
The Insolvency and Bankruptcy Code introduced the IRP as a central figure in the new insolvency framework. The code drew on international best practices, particularly from the United Kingdom's insolvency framework, where independent insolvency practitioners play a similar role. The IRP concept addressed the fundamental problem of the pre-IBC era: the absence of independent, time-bound professional management during the critical initial period of insolvency. The Ministry of Corporate Affairs has continued to refine the IRP's role through amendments and IBBI regulations.
Key Judicial Developments
Several Supreme Court and NCLT decisions have clarified and strengthened the IRP's role. The Supreme Court's judgment in Swiss Ribbons Pvt Ltd v Union of India upheld the constitutional validity of the IBC framework, including the IRP appointment mechanism. The Essar Steel judgment clarified timelines that directly impact how quickly IRPs must act. IBBI circulars have introduced additional disclosure requirements and conduct standards for IRPs, raising the bar for professional accountability.
The IRP Phase
What Is the Step-by-Step Process for an Interim Resolution Professional Under the IBC?
The IRP's work follows a clearly defined sequence mandated by the IBC and IBBI regulations. Each step has specific requirements and timelines.
Appointment by the NCLT
IBC — Section 16
Taking Charge of the Corporate Debtor
IBC — Sections 17 & 18
Public Announcement
IBC — Section 15
Collection and Verification of Claims
CIRP Regulations 12–14
Appointment of Registered Valuers
CIRP Regulation 27
Constitution of the Committee of Creditors
IBC — Section 21
Handover to Resolution Professional
IBC — Section 22
Sector Application
How Do IRP Services Apply Across Different Industries?
The IRP's responsibilities remain the same across industries, but the practical challenges vary significantly depending on the nature of the corporate debtor's business.
Manufacturing Companies
Manufacturing units in insolvency present unique challenges for IRPs. The corporate debtor typically holds significant physical assets — plant, machinery, raw materials, and finished goods inventory — that must be physically secured and preserved. The IRP must arrange for continued operations to maintain going concern value, which may require negotiating with suppliers for continued credit, managing workforce relations, and ensuring compliance with environmental and safety regulations. Valuation of specialised machinery and work-in-progress inventory requires sector-specific expertise.
Real Estate and Infrastructure
Real estate insolvency cases are among the most complex for IRPs because of the involvement of homebuyers who are now classified as financial creditors following the 2018 IBC amendment. The IRP must verify potentially thousands of individual claims from allottees, each with different payment histories and contractual terms. Additionally, the IRP must ensure that ongoing construction activity continues where feasible, manage regulatory approvals, and coordinate with state RERA authorities.
Financial Services and NBFCs
Insolvency of financial service providers follows a specialised framework under Section 227 of the IBC. The IRP appointed for such entities must navigate additional regulatory requirements imposed by the Reserve Bank of India. The claims verification process is more complex because the corporate debtor's liability book may include thousands of depositors or investors. Our firm has experience supporting insolvency professionals in financial services matters, complementing our broader liquidation support services.
Trading and Services Enterprises
Companies in the trading and services sector typically have fewer physical assets but significant intangible value in the form of contracts, customer relationships, brand reputation, and receivables. The IRP must focus on preserving contractual relationships, collecting outstanding receivables, and preventing key personnel from leaving during the transition period. Asset preservation in these cases is less about physical security and more about maintaining business continuity and stakeholder confidence.
Statutory Reference
IRP Responsibilities, Provisions and Timelines at a Glance
Each of the IRP's core obligations carries its own statutory source and its own deadline. The table below sets them out together.
| IRP Responsibility | IBC Provision | Timeline |
|---|---|---|
| Take charge of corporate debtor | Section 16 & 17 | Immediately upon appointment |
| Public announcement inviting claims | Section 15 | Within 3 days of appointment |
| Collect and verify creditor claims | Regulation 12–14 of CIRP Regulations | Within 14 days of public announcement |
| Appoint registered valuers | Regulation 27 of CIRP Regulations | Within 7 days of appointment |
| Constitute Committee of Creditors | Section 21 | Within 30 days of appointment |
| First CoC meeting | Regulation 19 | Within 7 days of CoC constitution |
| File reports with NCLT | Section 18 | As required by the Tribunal |
| Handover to RP (if replaced) | Section 22 | Upon CoC decision |
Why Our Firm
Why Should You Choose N D Savla & Associates for IRP Support Services?
The 30-day IRP window is the most compressed and consequential phase of the entire insolvency process. Getting it wrong can compromise the outcomes for every stakeholder. Here is why our firm is the right partner for this critical phase.
Speed and Precision Under Tight Deadlines
We understand that every hour counts during the IRP phase. Our team is structured to mobilise quickly — deploying professionals to the corporate debtor's premises within days of the IRP's appointment to begin claims collection, asset verification, and financial analysis. We maintain pre-built templates and checklists aligned with IBBI regulations to ensure nothing is missed.
Deep IBC and IBBI Regulatory Knowledge
Our professionals are thoroughly familiar with the CIRP Regulations, IBBI circulars, and evolving NCLT jurisprudence. This means the IRP gets advice that is not just technically accurate but also reflects the latest regulatory expectations and judicial interpretations.
End-to-End Financial Support
Beyond the IRP phase, we provide continuity of support if the same professional continues as the Resolution Professional. Our firm handles everything from claims verification and financial analysis to information memorandum preparation and merger and restructuring advisory. This continuity ensures that institutional knowledge built during the IRP phase is not lost.
Independent and Objective Approach
We provide independent financial advisory that serves the integrity of the insolvency process. Whether we are supporting the IRP, the creditor who filed the application, or the corporate debtor itself, our work is anchored in accuracy, compliance, and balanced representation of facts.
Multi-Disciplinary Capabilities
Insolvency matters invariably involve tax, company law, valuation, and accounting complexities. As a full-service chartered accountancy firm, we bring all these disciplines together without the need for multiple external advisors. This integrated approach saves time, reduces coordination risk, and produces more coherent outcomes.
Broader Practice
Our Broader Insolvency and Restructuring Services
The IRP phase is where the CIRP begins — our practice covers every stage before and after it:
Frequently Asked Questions
Frequently Asked Questions About Interim Resolution Professional Services
What is an Interim Resolution Professional and what role does an IRP play in insolvency proceedings?
Who can be appointed as an Interim Resolution Professional under the IBC?
How long does the Interim Resolution Professional remain in charge of the corporate debtor?
What happens to the board of directors when an IRP is appointed?
Can the Interim Resolution Professional be replaced during the insolvency process?
Need expert Interim Resolution Professional support?
Talk to our IBC team — public announcement, claims verification, valuer coordination and CoC constitution inside the 30-day window.
Book a ConsultationEmail: nainitsavla@savlagroup.in | N D Savla & Associates, Chartered Accountants, Mumbai