Chapter II - Corporate Insolvency Resolution Process
Section 16
Section 16: who is appointed interim resolution professional, and for how long?
Section 16 requires the tribunal to appoint an interim resolution professional (IRP) on the insolvency commencement date. The source of the name depends on who filed. From 26 May 2026, only a financial creditor's proposed professional is appointed directly. For a corporate applicant's filing under Section 10, the tribunal now asks IBBI to recommend a professional. The IRP holds office until a resolution professional is appointed under Section 22.
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This article is for general information. Refer to the Insolvency and Bankruptcy Code, 2016 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) The Adjudicating Authority shall appoint an interim resolution professional on the insolvency commencement date.
(2) Where the application for corporate insolvency resolution process is made by a financial creditor, the resolution professional, as proposed in the application under section 7, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him.
(3) Where the application for corporate insolvency resolution process is made by an operational creditor and—
(a) no proposal for an interim resolution professional is made, the Adjudicating Authority shall make a reference to the Board for the recommendation of an insolvency professional who may act as an interim resolution professional;
(b) a proposal for an interim resolution professional is made under sub-section (4) of section 9, the resolution professional as proposed, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him.
(3A) Where an application for the corporate insolvency resolution process is made under section 10, the Adjudicating Authority shall make a reference to the Board for the recommendation of an insolvency professional who may act as an interim resolution professional.
(4) The Board shall, within ten days of the receipt of a reference from the Adjudicating Authority under sub-section (3) or sub-section (3A), as the case may be, recommend the name of an insolvency professional to the Adjudicating Authority against whom no disciplinary proceedings are pending.
(5) The term of the interim resolution professional shall continue till the date of appointment of the resolution professional under section 22.
Introduction
Section 10 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026, in force from 26 May 2026 under S.O. 2625(E), made three changes. It substituted subsection (2), which used to cover both a financial creditor and the corporate debtor, so that it now covers only a financial creditor. It inserted subsection (3A), under which the tribunal refers a Section 10 application to IBBI for a recommendation. It also extended IBBI's ten-day recommendation duty in subsection (4) to references under subsection (3A).
The matching change in Section 10 itself (omission of clause (3)(b), which required the corporate applicant to name a proposed resolution professional) was made by Section 6 of the same 2026 Act. Appointment on the insolvency commencement date was substituted by the Insolvency and Bankruptcy Code (Amendment) Act, 2020 (with effect from 28 December 2019), and tenure until the Section 22 appointment by the Insolvency and Bankruptcy Code (Second Amendment) Act, 2018.
Key takeaways
Appointment on the admission date
Subsection (1) requires the IRP to be appointed on the insolvency commencement date, which is the date of admission under Section 5(12).
Financial creditor's nominee
Where a financial creditor files under Section 7, the professional it proposed is appointed if no disciplinary proceedings are pending against that professional.
IBBI recommends in Section 10 cases
Since 26 May 2026, the tribunal refers a corporate applicant's case to IBBI under subsection (3A), and IBBI recommends a name within ten days under subsection (4).
Tenure ends with the RP's appointment
Subsection (5) keeps the IRP in office until the resolution professional is appointed under Section 22.
Eligibility of the professional
Only an insolvency professional registered with IBBI can act as IRP. Regulation 3 of the CIRP Regulations makes a professional eligible only if they, and every partner or director of their insolvency professional entity, are independent of the corporate debtor. The regulation also requires disclosures at appointment and afterwards under the Code of Conduct.
IRP expenses
Regulation 33 of the CIRP Regulations says the applicant fixes the expenses to be incurred on or by the IRP, and the tribunal fixes them if the applicant has not. The applicant bears these expenses, and the committee of creditors reimburses them to the extent it ratifies. Ratified expenses are insolvency resolution process costs.
From IRP to resolution professional
After the committee of creditors is constituted, it either appoints the IRP as resolution professional or replaces the IRP under Section 22. The IRP's term continues until that appointment under subsection (5). Regulation 17(3) of the CIRP Regulations requires the IRP to perform the resolution professional's functions from the fortieth day of the insolvency commencement date if the appointment is delayed.
Which route applies to the IRP appointment?
- 1
Who filed the CIRP application?
- Financial creditor (Section 7): The proposed professional is appointed if no disciplinary proceedings are pending (subsection (2)).
- Operational creditor (Section 9): Go to the next question.
- Corporate applicant (Section 10): The tribunal refers to IBBI, which recommends a name within ten days (subsections (3A) and (4)).
- 2
Did the operational creditor propose an IRP under Section 9(4)?
- Yes: The proposed professional is appointed if no disciplinary proceedings are pending (subsection (3)(b)).
- No: The tribunal refers to IBBI, which recommends a name within ten days (subsections (3)(a) and (4)).
Practical checklist
Do
- As a financial creditor, propose a professional who is independent of the corporate debtor and has no pending disciplinary proceedings.
- In a Section 10 filing, expect the tribunal to seek IBBI's recommendation instead of a name from the applicant.
- Fix and record the IRP's expenses at the time of application to avoid later disputes over ratification.
Avoid
- Do not rely on the pre-2026 subsection (2) that let a corporate debtor's proposed professional be appointed directly.
- Do not treat the IRP's tenure as ending on a fixed day; it runs until the Section 22 appointment.
Glossary
- Interim resolution professional (IRP)
- The insolvency professional who manages the corporate debtor from the insolvency commencement date until a resolution professional is appointed.
- Board
- The Insolvency and Bankruptcy Board of India (IBBI), which regulates insolvency professionals.
Frequently asked questions
Can a company filing its own CIRP application choose the IRP?
Not since 26 May 2026. Under subsection (3A), the tribunal refers a Section 10 application to IBBI, which recommends an insolvency professional within ten days.
When is the IRP appointed?
On the insolvency commencement date, which is the date the tribunal admits the application.
What disqualifies a proposed professional?
Section 16 bars appointment of a proposed professional against whom disciplinary proceedings are pending. Regulation 3 of the CIRP Regulations separately requires independence from the corporate debtor.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026