Interim Resolution Professional vs Resolution Professional
Same person, often. Different office, always. The exam tests exactly where the IRP's role ends and the RP's begins.
Two insolvency professionals can run a CIRP, one after the other. The interim resolution professional (IRP) is appointed by the NCLT on the insolvency commencement date and runs the company until the committee of creditors exists. The resolution professional (RP) is chosen by that committee and runs the rest of the process.
Often the same person fills both roles, because the CoC can simply confirm the IRP. But the two offices have different sources of appointment, different duties and different ways of being removed, and the Limited Insolvency Examination tests the boundary between them closely.
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IRP and RP Side by Side
The law as at the exam cut-off of 4 February 2025.
Appointed by
Interim resolution professional
The NCLT, on the insolvency commencement date (s. 16(1))
Resolution professional
The CoC at its first meeting by 66%, either confirming the IRP or proposing another IP (s. 22(2))
Who proposes the name
Interim resolution professional
The financial creditor or corporate applicant must propose one; an operational creditor may. Otherwise IBBI recommends within 10 days (s. 16(2)-(4))
Resolution professional
The CoC. A replacement goes to the NCLT, which seeks IBBI's confirmation (s. 22(3)(b), (4))
Tenure
Interim resolution professional
Until the RP is appointed (s. 16(5))
Resolution professional
Until the plan is approved or a liquidator is appointed (s. 23(1))
Core job
Interim resolution professional
Collect information, receive and collate claims, constitute the CoC, run the business as a going concern (ss. 18, 20)
Resolution professional
Conduct the entire CIRP: IM, invitation of plans, presenting them to the CoC, avoidance applications (ss. 23, 25)
Management of the company
Interim resolution professional
Vests in the IRP; board powers suspended (s. 17)
Resolution professional
Exercises all powers of the IRP (s. 23(2))
Interim finance
Interim resolution professional
May raise it, but no security over encumbered property without the secured creditor's consent, unless the property is worth at least twice the debt (s. 20(2)(c))
Resolution professional
Raises it subject to CoC approval under s. 28 (s. 25(2)(c))
Removal
Interim resolution professional
Replaced when the CoC resolves to appoint another RP
Resolution professional
Replaced by the CoC by 66% at any time (s. 27(2))
| Interim resolution professional | Resolution professional | |
|---|---|---|
| Appointed by | The NCLT, on the insolvency commencement date (s. 16(1)) | The CoC at its first meeting by 66%, either confirming the IRP or proposing another IP (s. 22(2)) |
| Who proposes the name | The financial creditor or corporate applicant must propose one; an operational creditor may. Otherwise IBBI recommends within 10 days (s. 16(2)-(4)) | The CoC. A replacement goes to the NCLT, which seeks IBBI's confirmation (s. 22(3)(b), (4)) |
| Tenure | Until the RP is appointed (s. 16(5)) | Until the plan is approved or a liquidator is appointed (s. 23(1)) |
| Core job | Collect information, receive and collate claims, constitute the CoC, run the business as a going concern (ss. 18, 20) | Conduct the entire CIRP: IM, invitation of plans, presenting them to the CoC, avoidance applications (ss. 23, 25) |
| Management of the company | Vests in the IRP; board powers suspended (s. 17) | Exercises all powers of the IRP (s. 23(2)) |
| Interim finance | May raise it, but no security over encumbered property without the secured creditor's consent, unless the property is worth at least twice the debt (s. 20(2)(c)) | Raises it subject to CoC approval under s. 28 (s. 25(2)(c)) |
| Removal | Replaced when the CoC resolves to appoint another RP | Replaced by the CoC by 66% at any time (s. 27(2)) |
Handover Rules
- check_circleIf IBBI has not confirmed the CoC's proposed RP within 10 days, the NCLT directs the IRP to continue as RP until it does (s. 22(5)).
- check_circleIf no RP is appointed by the 40th day of the CIRP, the IRP performs the functions of the RP from that day until one is appointed (reg. 17(3)).
- check_circleOn a change of RP under s. 22(4), the IRP must hand over all information, documents and records to the RP (s. 23(3)).
- check_circleIf the plan has been submitted but the CIRP period has expired, the RP continues to manage the company until the NCLT approves the plan or appoints a liquidator (proviso to s. 23(1)).
- check_circlePromoters, personnel and those managing the corporate debtor must cooperate with the IRP; the IRP can seek NCLT directions if they do not (s. 19).
The RP Needs the CoC for Section 28 Actions
Raising interim finance beyond the CoC's limit, creating security, related party transactions, changing management, changing auditors and the other actions in section 28(1) need prior approval by 66% of voting share. Without it the action is void.
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What the 2026 Amendment Changed
In force from 26 May 2026. Not part of the exam's cut-off law.
IRP on a corporate debtor's own application (s. 10)
Before
The IRP proposed in the application
Now
NCLT refers to IBBI for a recommendation (s. 16(3A))
Confirming the IRP as RP
Before
CoC decision communicated to the IRP, the company and the NCLT
Now
Deemed appointment from the date of the CoC resolution, communicated to IBBI (s. 22(3)(a))
Claims
Before
IRP receives and collates claims
Now
Collation expressly includes verifying them and, where required, determining their value (Explanation to s. 18(b))
Duty to cooperate
Before
Personnel, promoters and managers
Now
Extended to anyone engaged in a contract for service with the corporate debtor (s. 19(1))
| Point | Before | Now |
|---|---|---|
| IRP on a corporate debtor's own application (s. 10) | The IRP proposed in the application | NCLT refers to IBBI for a recommendation (s. 16(3A)) |
| Confirming the IRP as RP | CoC decision communicated to the IRP, the company and the NCLT | Deemed appointment from the date of the CoC resolution, communicated to IBBI (s. 22(3)(a)) |
| Claims | IRP receives and collates claims | Collation expressly includes verifying them and, where required, determining their value (Explanation to s. 18(b)) |
| Duty to cooperate | Personnel, promoters and managers | Extended to anyone engaged in a contract for service with the corporate debtor (s. 19(1)) |
How the Limited Insolvency Examination Tests This
A case study will describe an IP doing something on, say, day 25 or day 45, and ask whether it was within that person's role at that time. Inviting expressions of interest on day 25, before the CoC has met, is an RP function performed too early; managing operations on day 45 when the CoC has not yet appointed anyone is still lawful, because regulation 17(3) has the IRP act as RP.
The trap is assuming the IRP needs CoC approval for everything. There is no CoC for most of the IRP's tenure. The CoC approval regime in section 28 applies to the RP; the IRP's main restraint is the specific rule on security for interim finance in section 20(2)(c).
FAQs
What is the difference between IRP and RP?expand_more
The IRP is appointed by the NCLT when the CIRP starts and runs the company until the committee of creditors is formed. The RP is appointed by the CoC and conducts the rest of the CIRP, including inviting and presenting resolution plans.
Can the IRP become the RP?expand_more
Yes. At its first meeting the CoC may, by 66% of voting share, appoint the IRP as RP (section 22(2)). It is the most common outcome.
How is a resolution professional replaced?expand_more
By a CoC resolution passed by 66% of voting share, with the new IP's written consent. The name goes to the NCLT, which appoints after IBBI confirms (section 27).
Who pays the IRP?expand_more
The applicant fixes and bears the IRP's expenses, including the fee (regulation 33). The CoC reimburses them to the extent it ratifies, and the ratified amount becomes insolvency resolution process cost. The RP's expenses are fixed by the CoC (regulation 34).
Next steps
- Committee of Creditorsarrow_forward
- CIRP Costs & Feesarrow_forward
- IP Code of Conductarrow_forward
- AFAarrow_forward
65 questions, case-study format, negative marking.