The Role of Insolvency Professionals in Corporate Insolvency Resolution Process (CIRP)
Introduction The implementation of the Insolvency and Bankruptcy Code (IBC) in 2016 revolutionized how corporate insolvency and bankruptcy issues are managed in India. At the heart of the Corporate Insolvency Resolution Process (CIRP) under this framework is the Insolvency Professional (IP). These professionals are key to ensuring that the CIRP is conducted efficiently, lawfully, and with a focus on resolution over liquidation. Appointment and Responsibilities of Insolvency Professionals Insolvency professionals are designated as Interim Resolution Professionals (IRP) or Resolution Professionals (RP) according to Sections 16 and 22 of the IBC. Once a corporate debtor is admitted into insolvency under Sections 7, 9, or 10, the appointment of the IRP takes place. As per Section 17, the IRP assumes control over the corporate debtor’s management, including its assets and business activities. Following the formation of the Committee of...