Duties explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The duties of the IRP and RP are set out across three provisions: section 17(2)(e) makes the IRP responsible for complying with requirements under any law on behalf of the corporate debtor, section 20(1) requires every endeavour to protect and preserve the value of its property and manage operations as a going concern, and section 25(1) makes preserving and protecting assets — including continued business operations — the RP's duty.
The three provisions
| Provision | Duty | Whose |
|---|---|---|
| Section 17(2)(e) | Responsible for complying with the requirements under any law for the time being in force on behalf of the corporate debtor | IRP |
| Section 20(1) | Make every endeavour to protect and preserve the value of the property of the corporate debtor and manage the operations as a going concern | IRP |
| Section 25(1) | Preserve and protect the assets of the corporate debtor, including the continued business operations | RP |
The compliance duty is wider than it appears
Section 17(2)(e) is not confined to the IBC. The duties of the IRP include compliance with any law, on behalf of the corporate debtor — tax filings, GST returns, EPFO and ESIC obligations, environmental and sectoral requirements, company law filings.
This is why regulatory and compliance support is a recognised workstream in an insolvency assignment, covering income tax matters, GST reconciliation, EPFO and ESIC claims, statutory dues verification and regulatory compliance. A professional taking over a distressed company inherits a compliance position that is frequently in arrears, and the duty attaches immediately.
"Every endeavour" — the standard in section 20(1)
Section 20(1) does not impose an absolute obligation to preserve value. It requires the IRP to make every endeavour to do so.
That formulation matters in a business that is deteriorating for reasons outside anyone's control. What it requires is demonstrable effort directed at preservation — and, in practice, a record of the decisions taken and why.
Going concern does not mean production at any cost
Both section 20(1) and section 25(1) speak of operations — managing as a going concern, and continued business operations. That is frequently read as an obligation to keep producing.
ICAI's case material addresses the point directly: the requirement to preserve the corporate debtor as a "going concern" under the Code does not necessarily mandate continuous production, and running operations at a loss during CIRP would itself have eroded enterprise value and diluted the eventual return to stakeholders.
In the case where that decision was taken, the professional — in consultation with the CoC — kept the plant in a maintenance-ready condition rather than running it during a period of commodity price volatility, and the financial creditor subsequently acknowledged the prudence of the decision.
Two disciplines follow. The decision belongs with the committee, and it must be tested against every lease, licence and contract carrying a non-operation clause — in that case a leasehold was terminated for non-operation exceeding two years.
The duties of the IRP and RP after the 2026 amendment
Three additions:
- Section 18 — the IRP or RP is specifically required to verify and determine the value of claims, a quasi-adjudicatory function requiring defensible support.
- Section 47 — failure to identify and file applications for transactions that could have been discovered with proper professional effort exposes the professional to disciplinary referral to IBBI.
- Regulation 40F — where a CoC applies to restore the CIRP under section 33(1A), the RP continues discharging CIRP responsibilities until the restoration application is decided.
Section 28 — where the RP's authority stops
The RP shall not take any of the actions listed in section 28 without the prior approval of the CoC. The duties of the IRP and RP therefore operate within a boundary: the professional manages, and the committee approves the actions the Code reserves to it.
Compliance checklist
- Assess the corporate debtor's compliance position under all applicable laws at takeover.
- Record the endeavours made to preserve value, and the reasoning.
- Take the operate or suspend decision with the CoC, and minute it.
- Audit leases, licences and contracts for non-operation clauses before suspending.
- Support the section 18 claim determination with defensible material.
- Run a documented forensic transaction review given section 47.
- Obtain prior CoC approval for every section 28 action.
Common mistakes
- Reading the compliance duty as limited to the IBC.
- Equating going concern with continuous production.
- Suspending operations without CoC endorsement or a lease review.
- Taking a section 28 action without prior approval.