Interim Resolution Professional Appointment 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.
Section 16 requires the Adjudicating Authority to appoint an interim resolution professional within 14 days from the insolvency commencement date. Where a financial creditor or the corporate debtor applies, the professional proposed in the application is appointed provided no disciplinary proceedings are pending; where an operational creditor proposes none, the Adjudicating Authority refers to IBBI for a recommendation.
The appointment routes
| Applicant | Who is appointed | Condition |
|---|---|---|
| Financial creditor or corporate debtor | The resolution professional proposed in the application | No pending disciplinary proceedings against him or her |
| Operational creditor who proposes an IRP | The proposed professional | No disciplinary issues |
| Operational creditor who does not propose | The professional recommended by IBBI on a reference from the Adjudicating Authority | — |
The interim resolution professional must be appointed within 14 days from the insolvency commencement date.
Why the disciplinary condition is stated separately
The condition is the absence of pending disciplinary proceedings. A professional under investigation is not appointed, even though nothing has been established against them.
That is consistent with how the courts have described the position. In Pooja Menghani v. IBBI the Delhi High Court observed that an interim resolution professional virtually takes over the company and becomes the heart and brain of the company under the insolvency resolution process, so that a person having the slightest of disqualification cannot be permitted to be appointed as an IP, otherwise the entire purpose of the IBC will get vitiated.
For a professional accepting a proposal, the practical consequence is that consent should be given only after confirming the disciplinary position — a proposal that fails at appointment costs the applicant time it cannot spare under a 14-day mandate.
Why the operational creditor route differs
A financial creditor generally has a relationship with insolvency professionals and can propose one. An operational creditor — a supplier pursuing an unpaid invoice — frequently does not, and the Code does not require it to.
The IBBI recommendation route exists for that case. It also has a structural benefit: an interim resolution professional recommended by the Board rather than proposed by a party begins the assignment without any association with the applicant.
The 2026 amendment and institutional appointment
The IBC (Amendment) Act, 2026 extends that principle:
- Under section 10, the interim resolution professional in a corporate applicant case is appointed by the Adjudicating Authority and shall not be recommended by the corporate applicant.
- The liquidator is likewise appointed by the Adjudicating Authority, with the CoC retaining replacement rights — moving liquidator selection to an institutional selection mechanism rather than being driven solely by lender preferences.
The direction of travel is consistent: the professional who takes control of a distressed company should not be chosen by the party whose conduct may be examined.
The 14 days in the compressed timeline
The section 16 period now sits alongside the other 2026 timelines:
- Admission — 14 days under sections 7, 9 and 10, with section 7(5) reading "shall" rather than "may".
- Interim resolution professional appointment — 14 days from the insolvency commencement date.
- Public announcement — immediately on appointment, generally within three days of admission.
- Orders under sections 31 and 33 — 30-day outer limit.
An applicant who names a professional whose consent and disciplinary position are not confirmed introduces delay into the tightest part of the process.
Compliance checklist
- Obtain the professional's written consent before naming them.
- Confirm there are no pending disciplinary proceedings.
- For an operational creditor application, decide whether to propose or leave it to the IBBI recommendation route.
- Diarise 14 days from the insolvency commencement date.
- In a section 10 application, do not propose an IRP.
- Prepare the public announcement to follow immediately on appointment.
Common mistakes
- Naming a professional without confirming the disciplinary position.
- Proposing an IRP in a section 10 filing.
- Treating the 14 days as running from admission rather than from the insolvency commencement date.
- Delaying the public announcement after appointment.