Section 18 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 18 lists what an interim resolution professional must do: gather information about the corporate debtor, collate creditors' claims, constitute the committee of creditors, run the business until a resolution professional is appointed, file information with the information utility, take control of assets and perform any other duty the Board specifies. This article reads it as per the IBBI consolidated text of the Code amended up to 12 August 2021 and then covers the change the Insolvency and Bankruptcy Code (Amendment) Act, 2026 makes to clause (b).
The interim resolution professional must collect information on assets, finances and operations, receive and collate claims, constitute a committee of creditors, monitor assets and manage operations until a resolution professional is appointed, file information with the information utility if necessary, and take control and custody of assets owned by the corporate debtor. An Explanation excludes third-party assets held in trust or bailment, subsidiaries' assets and notified assets. The 2026 Act adds a duty to verify claims.
The duties, clause by clause
Section 18 says the interim resolution professional "shall perform the following duties".
| Clause | Duty |
|---|---|
| (a) | collect all information relating to the assets, finances and operations of the corporate debtor for determining its financial position, including business operations for the previous two years, financial and operational payments for the previous two years, the list of assets and liabilities as on the initiation date, and such other matters as may be specified |
| (b) | receive and collate all the claims submitted by creditors to him, pursuant to the public announcement made under sections 13 and 15 |
| (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 |
| (f) | take control and custody of any asset over which the corporate debtor has ownership rights as recorded in the balance sheet, or with the information utility, the depository of securities or any other registry that records ownership of assets |
| (g) | perform such other duties as may be specified by the Board |
Clause (a) refers to "the initiation date", which section 5(11) defines as the date the application is made. Clause (b) connects the duty to the announcement under section 13 and section 15. Clause (c) leads to section 21, which says who sits on the committee.
Example. Dutta Engineering Private Limited is admitted. The interim resolution professional collects two years of business and payment records and the asset and liability list as on the initiation date, receives claims from a bank, three suppliers and thirty employees, and then constitutes the committee of creditors. Until the committee appoints a resolution professional, the interim resolution professional monitors the assets and manages operations. A lender whose claim is large and a supplier whose claim is small can ask for a legal consultation on how to file and support a claim.
The assets the professional takes custody of
Clause (f) lists six kinds of asset that may be taken into control: assets over which the corporate debtor has ownership rights which may be located in a foreign country; assets that may or may not be in the possession of the corporate debtor; tangible assets, movable or immovable; intangible assets including intellectual property; securities including shares held in any subsidiary, financial instruments and insurance policies; and assets subject to the determination of ownership by a court or authority.
The Explanation then narrows "assets" for the purposes of the section. They do not include (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. The notified list, if any, is not in the texts consulted.
The effect: shares of a subsidiary held by the corporate debtor can fall under clause (f)(v), while the subsidiary's own assets are outside the section by clause (b) of the Explanation.
What the Amendment Act, 2026 changes
Section 11 of the Amendment Act, 2026 (No. 6 of 2026) changes clause (b) in two ways.
| As printed in the consolidated text | After the 2026 Act |
|---|---|
| (b) "receive and collate all the claims submitted by creditors to him, pursuant to the public announcement made under sections 13 and 15" | After the words "submitted by creditors to him" the words "in such manner as may be specified" are inserted |
| No Explanation to clause (b) | A new 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." |
Read together, the amended clause ties the receipt of claims to a specified manner and makes verification, and where required valuation, part of the interim resolution professional's collating duty. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether this change has been notified. Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 carry the detail; the copy consulted is amended up to 09-06-2026 as printed under its title.
How to read section 18 with its neighbours
- Section 17 gives the interim resolution professional control; section 18 lists the duties.
- Section 19 obliges others to assist.
- Section 20 deals with operations as a going concern.
- Our post on the role of the interim resolution professional covers the topic as a whole.
Where duties pass to a resolution professional, section 23(2) of the Code says the resolution professional exercises the powers and performs the duties vested in the interim resolution professional under Chapter II.
Need help with a claim or a handover?
Creditors need to know how and when to submit a claim, and directors need to know what to hand over. A legal consultation can walk through the claim papers, the asset list and the timing with you.
Key takeaways
- Section 18 lists seven duties of the interim resolution professional, from collecting two years of records to taking custody of assets.
- Claims are received and collated pursuant to the public announcement under sections 13 and 15.
- The Explanation excludes third-party assets held in trust or bailment, subsidiaries' assets and notified assets.
- The 2026 Act adds "in such manner as may be specified" and a duty to verify claims and, if required, determine their value.
- Check whether the Amendment Act, 2026 change has been notified.
Read next
- Section 19: duty of persons to cooperate with the interim resolution professional
- Section 21: committee of creditors
- Section 17: management by the interim resolution professional
- Duties of the IRP and RP under sections 17, 20 and 25
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.