Chapter II - Corporate Insolvency Resolution Process
Section 18
Section 18: what must the interim resolution professional do?
Section 18 lists the duties of the interim resolution professional (IRP). The IRP collects information on the corporate debtor's finances and operations, receives and collates creditors' claims, constitutes the committee of creditors, monitors and manages assets, and takes custody of assets the debtor owns. From 26 May 2026, the Code says expressly that collating claims includes verifying them and, if required, determining their value.
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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
The interim resolution professional shall perform the following duties, namely:—
(a) collect all information relating to the assets, finances and operations of the corporate debtor for determining the financial position of the corporate debtor, including information relating to—
(i) business operations for the previous two years;
(ii) financial and operational payments for the previous two years;
(iii) list of assets and liabilities as on the initiation date; and
(iv) such other matters as may be specified;
(b) receive and collate all the claims submitted by creditors to him in such manner as may be specified, pursuant to the public announcement made under sections 13 and 15;
Explanation.—For the removal of doubts, it is hereby clarified that the interim resolution professional, while collating the claims, shall verify them, and, if required, determine the value of such verified claims.
(c) constitute a committee of creditors;
(d) monitor the assets of the corporate debtor and manage its operations until a resolution professional is appointed by the committee of creditors;
(e) file information collected with the information utility, if necessary; and
(f) take control and custody of any asset over which the corporate debtor has ownership rights as recorded in the balance sheet of the corporate debtor, or with information utility or the depository of securities or any other registry that records the ownership of assets including—
(i) assets over which the corporate debtor has ownership rights which may be located in a foreign country;
(ii) assets that may or may not be in possession of the corporate debtor;
(iii) tangible assets, whether movable or immovable;
(iv) intangible assets including intellectual property;
(v) securities including shares held in any subsidiary of the corporate debtor, financial instruments, insurance policies;
(vi) assets subject to the determination of ownership by a court or authority;
(g) to perform such other duties as may be specified by the Board.
Explanation.—For the purposes of this section, the term "assets" shall not include the following, namely:—
(a) assets owned by a third party in possession of the corporate debtor held under trust or under contractual arrangements including bailment;
(b) assets of any Indian or foreign subsidiary of the corporate debtor; and
(c) such other assets as may be notified by the Central Government in consultation with any financial sector regulator.
Introduction
Section 11 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026, in force from 26 May 2026 under S.O. 2625(E), amended clause (b). Claims are now received "in such manner as may be specified" by IBBI regulations. A new Explanation clarifies that the IRP, while collating claims, verifies them and, if required, determines the value of the verified claims.
Section 18 sits between Section 17, which vests management of the corporate debtor in the IRP, and Section 19, which requires persons connected with the debtor to cooperate. The detailed claims procedure is in Chapter IV of the IBBI CIRP Regulations.
Key takeaways
Information for the financial position
Clause (a) requires information on business operations and payments for the previous two years and a list of assets and liabilities as on the initiation date.
Claims are verified, not just collected
The 2026 Explanation to clause (b) confirms that collating claims includes verifying them and, where needed, determining their value.
Committee of creditors
Clause (c) makes constituting the committee of creditors an IRP duty. Regulation 17 of the CIRP Regulations sets a two-day deadline for the constitution report after claims are verified.
Custody of owned assets only
Clause (f) covers assets the corporate debtor owns, wherever located. The closing Explanation excludes third-party assets held in trust or bailment and the assets of subsidiaries.
Receiving claims after the 2026 change
Regulations 7 to 9A of the CIRP Regulations require claims with proof in the form notified by IBBI through circular. Since 2 June 2026 this replaces the earlier Forms B to F of the Schedule. Operational creditors, financial creditors, creditors in a class, workmen and employees, and other creditors each have their own regulation.
Under Regulation 12(1), a claim is due by the last date in the public announcement. A late claim may still be filed up to the date of issue of the request for resolution plans or ninety days from the insolvency commencement date, whichever is later. A creditor filing beyond ninety days must give reasons for the delay.
Verification and valuation of claims
Regulation 13(1) requires every claim to be verified as on the insolvency commencement date, within seven days from the last date for receiving claims, and a list of creditors to be maintained. Regulation 13(1A), substituted from 2 June 2026, requires the IRP to admit or reject each claim in whole or part and to communicate the decision with reasons within seven days.
Where the amount claimed is not precise, Regulation 14 requires the IRP to make a best estimate from the available information and to revise it when new information warrants. This matches the 2026 Explanation's reference to determining the value of verified claims.
Taking custody of assets and records
Regulation 3A of the CIRP Regulations, retitled "Duty to extend assistance and cooperation" from 2 June 2026, requires the IRP to take custody and control of the information referred to in clause (a) and the assets referred to in clause (f) from any person covered by Section 19. Lists of assets and records handed over must be signed by the parties present and by at least two witnesses.
Practical checklist
Do
- Use the claim form currently notified by IBBI through circular rather than an old Schedule form.
- Verify each claim against supporting evidence and record reasons for admission or rejection.
- Make and document a best estimate where a claim is contingent or unclear, and revise it when new information arrives.
- Prepare signed, witnessed lists when taking custody of assets and records.
Avoid
- Do not treat the IRP's role on claims as clerical collection only; verification is part of the duty.
- Do not take custody of third-party goods held in trust or bailment, or of subsidiaries' assets, as assets of the corporate debtor.
Glossary
- Collation of claims
- Receiving, verifying and listing creditors' claims, including determining their value where required (clause (b) and its 2026 Explanation).
- Information utility
- A regulated repository of financial information registered with IBBI under the Code.
Frequently asked questions
Does the IRP decide whether a claim is valid?
The IRP verifies claims and, under Regulation 13(1A) of the CIRP Regulations, admits or rejects them in whole or in part with reasons. The 2026 Explanation to Section 18(b) confirms that verification and, if required, valuation are part of collating claims.
Can a creditor file a claim after the date in the public announcement?
Yes, within limits. Regulation 12(1) allows filing up to the date of issue of the request for resolution plans or ninety days from the insolvency commencement date, whichever is later, with reasons for delay beyond ninety days.
Does the IRP take control of a subsidiary's assets?
No. The Explanation to Section 18 excludes the assets of any Indian or foreign subsidiary from "assets" for this section, although shares held in a subsidiary are covered by clause (f)(v).
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026