Home › Insolvency › Interim Resolution Professional (IRP)
Interim Resolution Professional (IRP) Services Under the IBC
An Interim Resolution Professional (IRP) is appointed under the Insolvency and Bankruptcy Code, 2016 (IBC) to take control of a corporate debtor at the very start of the Corporate Insolvency Resolution Process (CIRP). The IRP preserves the value of the business, manages its operations, verifies creditor claims, and constitutes the Committee of Creditors — laying the groundwork for a fair and orderly resolution.
At N D Savla & Associates, our insolvency professionals act as IRPs with a disciplined, compliance-first approach, and coordinate seamlessly with our wider insolvency practice — Resolution Professional services, Liquidator services, Voluntary Liquidation, and Insolvency & Bankruptcy (IBC) matters before the NCLT.
This page explains what an IRP does, when one is appointed, the step-by-step CIRP entry process, how India's insolvency regime evolved, how the role plays out across different situations, and the questions stakeholders ask most.
What Does an Interim Resolution Professional Do?
The IRP takes over management of the corporate debtor the moment CIRP begins, replacing the suspended board. The immediate priorities are preserving assets, keeping the business running, and building an accurate picture of who the creditors are.
The role is stabilising and fact-finding: the IRP holds the company steady while the creditor body is assembled and control is formalised.
- Takes control of the corporate debtor's operations and assets.
- Makes the public announcement and invites creditor claims.
- Verifies and collates claims and constitutes the Committee of Creditors.
When Is an IRP Appointed?
An IRP is appointed at the threshold of insolvency proceedings, and the trigger differs by who initiates the process.
On Admission of a CIRP Application
When the NCLT admits an application to initiate CIRP — filed by a financial creditor, operational creditor, or the corporate debtor itself — it appoints an IRP in the same order, and the insolvency commencement date is set.
Following a Demand Notice by an Operational Creditor
Where an operational creditor has issued a demand notice and remained unpaid, the subsequent application, if admitted, leads to the appointment of an IRP.
Suspension of the Board
From appointment, the powers of the board vest in the IRP, and the erstwhile management must cooperate and hand over records, assets, and access.
What Are the Statutory Timelines? Key Deadlines
The IRP must make the public announcement promptly after appointment, and the overall CIRP is designed to conclude within a defined statutory period, including extensions. Missing early timelines — the public announcement, claim collation, and CoC constitution — can delay the entire process, so the IRP phase must move quickly and precisely.
| Stage | Who Is in Control | Ends When |
|---|
| IRP phase | Interim Resolution Professional, board suspended | The CoC, at its first meeting, confirms or replaces the IRP |
| Resolution phase | Resolution Professional, board still suspended | A plan is approved by the CoC and sanctioned by the NCLT |
| Liquidation | Liquidator | Assets are realised, proceeds distributed, and the company dissolved |
How Does the IRP Manage the Start of CIRP? Our 8-Step Process
- Accept the appointment — confirm eligibility and take charge under the NCLT order.
- Make the public announcement — publish the insolvency commencement and invite claims within the prescribed time.
- Take control of assets and records — secure the corporate debtor's assets, books, and systems.
- Receive and verify claims — collect claims from financial, operational, and other creditors and verify them.
- Determine the financial position — collate claims to establish the creditor structure and voting shares.
- Constitute the Committee of Creditors — form the CoC based on verified financial creditor claims.
- Prepare the Information Memorandum — compile key financial and operational information for prospective resolution applicants.
- Convene the first CoC meeting — facilitate the appointment or confirmation of the Resolution Professional and hand over.
How Has India's Insolvency Framework Evolved?
India's insolvency regime was transformed by the IBC, and the IRP role is a creation of that reform.
Before the 1991 liberalisation and for years after, insolvency and recovery in India were governed by a fragmented patchwork — the Sick Industrial Companies Act and its BIFR machinery, provisions scattered across the Companies Act, and debt recovery tribunals. The result was notoriously slow, with distressed companies languishing for years and creditors recovering little.
As the post-liberalisation economy grew and bank credit expanded, the mounting problem of non-performing assets exposed how inadequate this fragmented system was. The need for a single, time-bound, creditor-in-control framework became pressing through the 2000s and early 2010s.
The Insolvency and Bankruptcy Code, 2016 consolidated the law into one code, created the Insolvency and Bankruptcy Board of India as regulator, established the profession of insolvency professionals, and made the NCLT the adjudicating authority. The IRP, Resolution Professional, and Liquidator roles all flow from this architecture, which prioritises value preservation and strict timelines. The regulator publishes current regulations at the Insolvency and Bankruptcy Board of India.
How Does the IRP Role Apply Across Different Cases?
Operating Companies With Ongoing Business
Where the corporate debtor is still trading, the IRP's priority is continuity — keeping employees, suppliers, and customers engaged so going-concern value is not lost during the transition.
Asset-Heavy but Dormant Companies
For companies that have largely stopped operating, the emphasis shifts to securing and preserving assets and records against dissipation while claims are gathered.
Disputed and Contested Admissions
Where the erstwhile management contests the process, the IRP must firmly but lawfully assert control and document non-cooperation for the Tribunal.
Why Choose N D Savla & Associates for IRP Services?
- Strict IBC compliance. Every action is taken within the Code, the regulations, and the NCLT's directions.
- Value preservation. We keep the business stable and protect asset value during the fragile early phase.
- Efficient process management. Claims, CoC formation, and the Information Memorandum are handled to timeline.
- Seamless handover. We transition cleanly into the Resolution Professional phase.
- Qualified professionals. The role is handled by IBBI-registered insolvency professionals.
Tip: the quality of the early claim-collation and CoC-constitution work sets the tone for the whole CIRP. Errors here surface later as disputes, so precision in the IRP phase pays off throughout the process.
Frequently Asked Questions — Interim Resolution Professional
Who is an Interim Resolution Professional under the IBC?
An Interim Resolution Professional (IRP) is an insolvency professional registered with the Insolvency and Bankruptcy Board of India and appointed by the National Company Law Tribunal to take charge of a corporate debtor when the Corporate Insolvency Resolution Process (CIRP) begins. From the date of appointment, the powers of the board of directors stand suspended and vest in the IRP. The IRP is the first professional in control of the company and sets the process in motion until the Committee of Creditors confirms a Resolution Professional.
What is the role of the IRP during CIRP?
The IRP takes over the management of the corporate debtor, makes the public announcement of the insolvency commencement, receives and verifies claims from creditors, and constitutes the Committee of Creditors (CoC). The IRP also preserves the value of the company's assets and keeps it running as a going concern. In effect, the IRP stabilises the company and builds the factual and creditor picture on which the rest of the resolution process depends.
How long does the IRP serve?
The IRP serves from the date of appointment until the Committee of Creditors, at its first meeting, either resolves to appoint the IRP as the Resolution Professional or replaces the IRP with another insolvency professional. This is typically a period of a few weeks within the overall CIRP timeline. The transition to the Resolution Professional is a defined handover point, and a clean IRP phase makes that handover seamless.
Who appoints the IRP?
The IRP is appointed by the adjudicating authority, which is the National Company Law Tribunal, when it admits an application to initiate CIRP. Where the applicant proposes a specific insolvency professional, the Tribunal generally appoints that person as the IRP after confirming there is no disciplinary bar. The appointment is a judicial act, and the IRP's authority flows directly from the Tribunal's order.
What is CIRP?
The Corporate Insolvency Resolution Process (CIRP) is the time-bound legal process under the Insolvency and Bankruptcy Code for resolving the insolvency of a corporate debtor. It aims either to revive the company through a resolution plan or, failing that, to move it towards liquidation. CIRP is meant to be completed within a defined statutory timeline, which is why disciplined process management from the IRP stage onwards is so important.