Section 54F 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 54F says what the resolution professional must do and may do while the pre-packaged insolvency resolution process is on. It lists nine duties, seven powers, a duty on financial institutions to furnish information, a duty of cooperation on the debtor's people, and the rule on fees. 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 sub-section (5).
The resolution professional conducts the process during the pre-packaged insolvency resolution process period. He must confirm the claims, constitute the committee of creditors, prepare the information memorandum and file avoidance applications, and he has powers of access to books, records and information utility data. Financial institutions must furnish information, the debtor's people must cooperate, and the fees are set as specified. The 2026 Act widens who must cooperate.
Section 54F(1): who conducts the process
"The resolution professional shall conduct the pre-packaged insolvency resolution process of a corporate debtor during the pre-packaged insolvency resolution process period." The professional appointed under section 54E is the person who runs the process. The pre-packaged insolvency resolution process period is a term defined in section 5. A resolution professional or a committee member who wants a second view on how the duties are to be performed can take legal consultation.
Section 54F(2): the duties
| Clause | Duty as printed |
|---|---|
| (a) | confirm the list of claims submitted by the corporate debtor under section 54G, in such manner as may be specified |
| (b) | inform creditors regarding their claims as confirmed, in such manner as may be specified |
| (c) | maintain an updated list of claims, in such manner as may be specified |
| (d) | monitor management of the affairs of the corporate debtor |
| (e) | inform the committee of creditors in the event of breach of any of the obligations of the Board of Directors or partners, as the case may be, under the provisions of this Chapter and the rules and regulations made thereunder |
| (f) | constitute the committee of creditors and convene and attend all its meetings |
| (g) | prepare the information memorandum on the basis of the preliminary information memorandum submitted under section 54G and any other relevant information, in such form and manner as may be specified |
| (h) | file applications for avoidance of transactions under Chapter III or fraudulent or wrongful trading under Chapter VI, if any |
| (i) | such other duties as may be specified |
The list of claims comes from the corporate debtor, not from the creditors, in this process. The resolution professional confirms it, tells the creditors the result and keeps it updated; the debtor's claim list and the preliminary information memorandum are covered in our article on sections 54G, 54H and 54-I. Clauses (d) and (e) put the professional in the position of a monitor: the management stays with the board in this process (see section 54H), and the professional reports breaches to the committee of creditors. Clause (h) refers to "Chapter III" and "Chapter VI" as printed.
Section 54F(3): the powers
The resolution professional "shall exercise the following powers":
- (a) access all books of account, records and information available with the corporate debtor;
- (b) access the electronic records of the corporate debtor from an information utility having financial information of the corporate debtor;
- (c) access the books of account, records and other relevant documents of the corporate debtor available with Government authorities, statutory auditors, accountants and such other persons as may be specified;
- (d) attend meetings of members, Board of Directors and committee of directors, or partners, as the case may be, of the corporate debtor;
- (e) appoint accountants, legal or other professionals in such manner as may be specified;
- (f) collect all information relating to the assets, finances and operations of the corporate debtor for determining its financial position and the existence of any transactions within the scope of the provisions on avoidance of transactions under Chapter III or fraudulent or wrongful trading under Chapter VI, including (i) business operations for the previous two years from the date of the pre-packaged insolvency commencement date, (ii) financial and operational payments for the previous two years from that date, (iii) the list of assets and liabilities as on the initiation date, and (iv) such other matters as may be specified; and
- (g) take such other actions in such manner as may be specified.
Clause (f)(iii) uses the "initiation date", clauses (f)(i) and (ii) the "pre-packaged insolvency commencement date". Both dates are as the Code defines them in section 5, and the text does not say that they are the same.
Section 54F(4): information from financial institutions
"From the date of appointment of the resolution professional, the financial institutions maintaining accounts of the corporate debtor shall furnish all information relating to the corporate debtor available with them to the resolution professional, as and when required by him."
Section 54F(5): cooperation, as printed in the consolidated text
"The personnel of the corporate debtor, its promoters and any other person associated with the management of the corporate debtor shall extend all assistance and cooperation to the resolution professional as may be required by him to perform his duties and exercise his powers, and for such purposes, the provisions of sub-sections (2) and (3) of section 19 shall, mutatis mutandis apply, in relation to the proceedings under this Chapter." Sub-section (2) of section 19 lets the interim resolution professional apply to the Adjudicating Authority for necessary directions where a person does not cooperate, and sub-section (3) says the Adjudicating Authority shall by an order direct that person to comply with the instructions of the resolution professional and to cooperate in collection of information and management of the corporate debtor; read section 19 of the Code and our article on section 19.
Section 54F(6) and (7): fees and expenses
The fees of the resolution professional and the expenses he incurs for conducting the process "shall be determined in such manner as may be specified". There are two provisos: the committee of creditors "may impose limits and conditions on such fees and expenses", and fees and expenses for the period before the committee is constituted "shall be subject to ratification by it". Sub-section (7) says the fees and expenses "shall be borne in such manner as may be specified".
Example
Ms Nair is the resolution professional of Bluewave Components Pvt Ltd in a pre-packaged case. She confirms the list of claims given by the company, informs each creditor of its confirmed claim, and constitutes the committee of creditors. She asks the company's bank, a financial institution, for account information, and the bank must furnish it. She engages a legal professional for the avoidance review. Her fees for the weeks before the committee is formed are subject to the committee's ratification. The names are invented.
What the Amendment Act, 2026 changes
Section 36 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 substitutes sub-section (5) of section 54F. 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.
| As printed in the consolidated text | After the 2026 Act |
|---|---|
| (5) "The personnel of the corporate debtor, its promoters and any other person associated with the management of the corporate debtor shall extend all assistance and cooperation..." | (5) "Any person who is or has been a personnel of the corporate debtor or its promoter or associated with the management of the corporate debtor or engaged in a contract for service with the corporate debtor, shall extend all assistance and cooperation to the resolution professional as may be required by him to perform his duties and exercise his powers..." |
Both versions continue "and for such purposes, the provisions of sub-sections (2) and (3) of section 19 shall, mutatis mutandis, apply in relation to the proceedings under this Chapter". The new text adds persons who "has been" a personnel and persons "engaged in a contract for service with the corporate debtor". The Insolvency and Bankruptcy Board of India (Pre-packaged Insolvency Resolution Process) Regulations, 2021 are made under provisions of Chapter III-A of Part II; the copy consulted is amended up to 2 June 2026, and its date does not show that any provision of the Amendment Act, 2026 is in force. The detail is for those regulations and is not taken up here.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help acting as or dealing with a resolution professional?
Debtors, directors, promoters and lenders all have to work with the resolution professional in a pre-packaged case. Our team can help you understand your own obligations, what may be asked of you and how the fees and expenses are treated, through legal consultation.
Key takeaways
- The resolution professional conducts the pre-packaged process during the process period (section 54F(1)).
- Nine duties include confirming claims, constituting the committee of creditors, preparing the information memorandum and filing avoidance applications.
- Powers include access to books, information utility records and documents held by Government authorities and auditors.
- Financial institutions must furnish information from the date of appointment of the resolution professional.
- Fees are set as specified; the committee may impose limits, and early fees need its ratification. The 2026 Act widens the cooperation duty in sub-section (5).
Read next
- Sections 54G, 54H and 54-I: list of claims, management and the committee of creditors
- Sections 54D and 54E: time limit and moratorium
- Section 19: cooperation with the resolution professional
- Duties of the interim resolution professional and resolution professional
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.