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 97 gives two routes to a resolution professional appointment — confirmation of a professional named in the application, or nomination by the Board where none is named. Section 98 lets the debtor, a creditor or the creditors collectively apply to replace the professional, with a recommendation from the Board within ten days.
Who appoints, and where
The appointing authority follows the debtor's category. For a corporate insolvency the National Company Law Tribunal appoints; for individual and partnership insolvencies the Debt Recovery Tribunal does, except in the case of a personal guarantor to a corporate debtor, whose proceedings lie before the NCLT.
On admission of a corporate debtor into a CIRP, the resolution professional takes over the management and operations of the debtor and the powers of the board of directors stand suspended. Nothing equivalent happens to an individual.
In Part III the professional examines, reports, collates claims, advises on the repayment plan and supervises its implementation. Control of the debtor's business passes to the professional only to the extent the repayment plan itself authorises it — for example by requiring the professional to carry on the business, realise assets or administer funds.
Route one — a professional named in the application
Where the application is filed through a resolution professional, the sequence leading to the resolution professional appointment is fixed:
- The Adjudicating Authority directs the Board to confirm that no disciplinary proceedings are pending against the proposed professional, within seven days of receiving the application.
- The Board must respond within seven days, confirming whether any disciplinary proceedings exist.
- On receiving that confirmation, the Adjudicating Authority passes the order of appointment.
Route two — no professional named
Where no professional is proposed, or the application is filed directly by the debtor or a creditor rather than through a professional, the resolution professional appointment runs differently:
- The Adjudicating Authority directs the Board to nominate a resolution professional.
- The Board must nominate within ten days of receiving the direction.
- The Adjudicating Authority passes the order of appointment on receiving the Board's confirmation.
| Situation | What the Board does | Time |
|---|---|---|
| Professional named in the application | Confirms no disciplinary proceedings are pending | 7 days |
| No professional named | Nominates a professional | 10 days |
| Replacement sought under s.98 | Recommends a new professional, free of pending proceedings | 10 days |
Replacement under Section 98
Either the debtor or a creditor may apply to the Adjudicating Authority to replace the professional appointed under Section 97, where in their opinion a change is warranted by the effectiveness or suitability of the incumbent. The mechanics mirror the original resolution professional appointment:
- The Adjudicating Authority must refer the application to the Board within seven days.
- The Board must recommend a new professional within ten days, ensuring no disciplinary proceedings are pending against the person recommended.
- Where the creditors collectively decide in a meeting that a replacement is necessary, they too may apply to the Adjudicating Authority.
- Once the application is admitted, the Adjudicating Authority again directs the Board to confirm the absence of pending disciplinary action, and the Board communicates its decision within ten days.
The collective route matters. It gives the creditors a structured way to remove a professional they have lost confidence in, without each of them having to litigate the point individually.
The disciplinary filter
Every branch of a resolution professional appointment — confirmation, nomination and replacement — turns on the same question: are disciplinary proceedings pending against this person? The filter appears three times because the professional in an individual insolvency deals directly with a person's home, income and household expenses. There is no board of directors, no audit committee and no company secretary between the professional and the debtor.
Common mistakes
- Applying the corporate management-takeover model to an individual debtor.
- Confusing the seven-day confirmation with the ten-day nomination — they belong to different routes.
- Assuming only the applicant can seek a replacement. The debtor, a creditor and the creditors in a meeting all can.
- Overlooking that a replacement application goes to the Board before it goes anywhere else.