Sections 58E and 58F 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 58E lists the powers and duties of the resolution professional in the creditor-initiated insolvency resolution process and requires the debtor's people to cooperate. Section 58F keeps the management with the board of directors or the partners, but gives the resolution professional a right to attend meetings and to reject resolutions. Both sections are inserted by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026); they are not in the IBBI consolidated text of the Code amended up to 12 August 2021, and this article explains them from the Amendment Act.
The resolution professional calls for claims, prepares the information memorandum and a report confirming the process and the plan meet the requirements, and has duties and powers borrowed from sections 18, 25 and 54F. The board or partners keep managing the corporate debtor, but the resolution professional attends meetings and may reject any resolution, which then cannot be approved. Promoters and personnel must give information and cooperation or face liability.
Section 58E(1): the powers and duties
The resolution professional "shall exercise and perform the following powers and duties during the creditor-initiated insolvency resolution process period, in such manner and subject to such conditions as may be specified":
| Clause | Power or duty as printed |
|---|---|
| (a) | call for the submission of claims |
| (b) | prepare the information memorandum |
| (c) | prepare a report in such form as may be specified, confirming whether the conduct of the process is in accordance with the procedural requirements and that the resolution plan filed along with it complies with the requirements of sections 29A and 30, which apply mutatis mutandis |
| (d) | duties referred to in clauses (a) to (c) of section 18 and clauses (e) to (j) of sub-section (2) of section 25, which apply mutatis mutandis |
| (e) | powers as referred to in sub-sections (3) and (4) of section 54F, which apply mutatis mutandis |
| (f) | file such report and documents with the Board, as may be specified |
| (g) | perform such other duties, as may be specified |
Clauses (a) and (b) mirror the ordinary process: claims are called for from the creditors, unlike the pre-packaged process where the debtor submits the list. Clause (c) produces the report that goes with the approved plan to the Adjudicating Authority under section 58J(1). The sections borrowed are explained in separate articles: section 29A is covered in the post on who cannot be a resolution applicant, section 30 in our article on the submission of the resolution plan, and the powers in section 54F(3) and (4) in the article on section 54F. Those powers include access to the books and records of the corporate debtor and to its electronic records at an information utility, and a duty on financial institutions maintaining accounts of the debtor to furnish information.
A resolution professional or a lender who wants to confirm which duties apply can take legal consultation before the process starts.
Section 58E(2): cooperation
"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, 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 persons covered are the same as in the substituted section 54F(5) and the substituted section 19(1) of the Amendment Act, 2026, and include past personnel and persons under a contract for service. Section 19(2) and (3) carry the application to the Adjudicating Authority for directions and the order directing compliance; see our article on section 19.
Section 58F(1): management stays with the board
"Subject to the provisions of this section, during the creditor-initiated insolvency resolution process period, the management of the affairs of the corporate debtor shall continue to vest in the Board of Directors or the partners, of the corporate debtor as the case may be, and the provisions of section 54H shall, mutatis mutandis, apply to the proceedings under this Chapter." Section 54H requires the board or partners to protect and preserve value and manage operations as a going concern; see the article on sections 54G, 54H and 54-I. The model is therefore a debtor-in-possession model, as discussed in our post on sections 58A to 58K.
Section 58F(2): attending meetings and rejecting resolutions
"Notwithstanding anything contained in any other law, from the creditor-initiated insolvency commencement date, the resolution professional shall attend meetings of members, Board of Directors and committee of directors, or partners, of the corporate debtor, and he shall have the right to reject any resolutions passed in these meetings, subject to such conditions and in such manner as may be specified, and once he rejects a resolution, it shall not be approved."
This is the main control the resolution professional has over a board that stays in charge. The right is to "reject any resolutions", it applies from the commencement date, it overrides other law ("notwithstanding anything contained in any other law"), and it is "subject to such conditions and in such manner as may be specified". A rejected resolution "shall not be approved". The conditions are not in the texts consulted.
Section 58F(3): information and liability
"The promoter and personnel of the corporate debtor shall provide relevant information related to the corporate debtor for preparing the information memorandum to the resolution professional in such form and manner and within such period as may be specified, and where any person has sustained loss or damage as a consequence of the omission of any material information or inclusion of any misleading information or false information provided by such persons, they shall be liable and in this regard, the provisions of sub-sections (2) to (4) of section 54G and section 77A, shall, mutatis mutandis, apply to the proceedings under this Chapter."
The liability follows the pattern of the pre-packaged process: compensation for loss or damage, the knowledge-or-consent protection in section 54G(3), and a right to move a court having jurisdiction under section 54G(4) ("Subject to section 54E" there). Section 54G(2) is "without prejudice to section 77A", and section 58F(3) applies section 77A as well; see our articles on section 77A. Note that section 58F(3) adds "false information" to the wording of section 54G(2).
Example
Granite Foods Pvt Ltd is in a creditor-initiated process. Its board continues to run the plants. The resolution professional, Mr Sinha, attends the board meeting where a resolution to sell a plant to a related company is passed. Under section 58F(2) he rejects it, and it cannot be approved. He asks the promoters for information for the information memorandum within the period specified; a promoter gives a misleading statement of liabilities, and a lender sustains loss. Under section 58F(3) the promoter is liable, and the provisions of section 54G(2) to (4) and section 77A apply. The names and facts are invented.
Commencement and sources
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 these sections have been notified. The details of the process, including the manner, conditions and forms, are left to rules and regulations that are not in the texts consulted.
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 for or against the resolution professional?
Directors and promoters whose board continues to manage the business, and creditors who want the resolution professional to use the right to reject, both need to understand the limits of sections 58E and 58F. Our team can advise you through legal consultation.
Key takeaways
- Section 58E(1) lists seven powers and duties, including calling for claims, preparing the information memorandum and a report on the process and the plan.
- Duties and powers are borrowed from section 18, section 25(2) and section 54F(3) and (4), and sections 29A and 30 apply to the plan.
- Section 58E(2) extends the duty of cooperation to present and past personnel, promoters, persons in management and persons engaged under a contract for service.
- Under section 58F, management stays with the board or partners, but the resolution professional attends meetings and may reject any resolution, which then cannot be approved.
- Promoters and personnel who give misleading or false information are liable, with sections 54G(2) to (4) and 77A applied.
Read next
- Sections 58C and 58D: objections and the period for completing the process
- Section 58G: moratorium in the creditor-initiated process
- Section 54F: duties and powers of the resolution professional in a pre-pack
- The creditor-initiated insolvency resolution process under Chapter IV-A
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.