Sections 88 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.
Three short sections keep the fresh start process running smoothly once it has begun. Section 88 sets two continuing duties on the debtor. Section 89 explains how a resolution professional can be replaced. Section 90 lets the resolution professional ask the Adjudicating Authority for directions when the debtor does not comply or when the Chapter is silent. This article reads them as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. If you are a debtor in the process or a creditor watching it, a legal consultation can help you apply them.
The debtor must make available all information, attend meetings and comply with the resolution professional's requests, and must tell the professional as soon as reasonably possible of any material error or omission and of any change in financial circumstances that affects the process. Either the debtor or a creditor may apply to replace the resolution professional; the Adjudicating Authority refers the matter to the Board within seven days, the Board recommends a name within ten days, and the Authority appoints. The professional may seek directions to enforce the debtor's restrictions and duties, or on any matter the Chapter does not cover.
Section 88: the general duties of the debtor
Section 88 says: "The debtor shall" do two things.
(a) Co-operate. "Make available to the resolution professional all information relating to his affairs, attend meetings and comply with the requests of the resolution professional in relation to the fresh start process." There are three limbs: information, attendance and compliance with requests. The scope is "all information relating to his affairs", which is wide.
(b) Keep the professional informed. "Inform the resolution professional as soon as reasonably possible of—(i) any material error or omission in relation to the information or document supplied to the resolution professional; or (ii) any change in financial circumstances after the date of application, where such change has an impact on the fresh start process."
Clause (b) turns the application from a one-time statement into a continuing disclosure duty. Two triggers are named:
| Trigger | What must be reported | Qualifier |
|---|---|---|
| (i) | Any material error or omission in information or documents already supplied | "Material" |
| (ii) | Any change in financial circumstances after the date of the application | Only where the change "has an impact on the fresh start process" |
The time standard is "as soon as reasonably possible". The section does not fix a number of days. A debtor who discovers that he left out a creditor from the list required by section 81(4)(a), or who receives a windfall after filing, should inform the professional promptly. How the professional uses the information is shaped by the other sections of the Chapter; for instance, a deliberate false representation or omission is a ground for rejection in section 83(6)(c), discussed in our article on sections 82 and 83.
Example. Two weeks after the admission of her application, Latika Menon receives a large inheritance. That is a change in financial circumstances after the date of application. If it has an impact on the fresh start process, section 88(b)(ii) requires her to inform the resolution professional as soon as reasonably possible. Staying silent would also bring section 90(1)(b) into view, which lets the professional ask the Adjudicating Authority to direct compliance with section 88.
Section 89: replacement of the resolution professional
Who may apply (sub-section (1)). "Where the debtor or the creditor is of the opinion that the resolution professional appointed under section 82 is required to be replaced, he may apply to the Adjudicating Authority for the replacement of such resolution professional." The test is the applicant's own opinion. The section does not list grounds.
Steps and periods:
| Step | Who | Period printed | Sub-section |
|---|---|---|---|
| Reference to the Board | Adjudicating Authority | Within seven days of receiving the application | (2) |
| Recommendation of the name of an insolvency professional "against whom no disciplinary proceedings are pending" | The Board | Within ten days of receiving the reference | (3) |
| Appointment of another resolution professional "on the basis of the recommendation by the Board" | Adjudicating Authority | No period printed | (4) |
| Directions to the replaced professional to share all information with the new one and co-operate | Adjudicating Authority | May give | (5) |
Sub-section (5) is permissive. The Adjudicating Authority "may give directions to the resolution professional replaced under sub-section (4)" to (a) share all information with the new resolution professional in respect of the fresh start process and (b) co-operate with the new professional as may be required. This safeguards continuity: the replaced professional holds the file, and the Authority can compel its hand-over.
Section 89 mirrors the replacement provision for the insolvency resolution process in section 98, which is explained in our article on sections 97 and 98. The two differ in detail: section 98 has a route for the creditors' meeting to ask for replacement during the repayment plan, and section 89 does not. The reader should read each as printed.
Section 90: directions for compliance
Sub-section (1). The resolution professional "may apply to the Adjudicating Authority for any of the following directions":
- (a) compliance of the restrictions referred to in sub-section (3) of section 85, in case of non-compliance by the debtor; or
- (b) compliance of the duties of the debtor referred to in section 88, in case of non-compliance by the debtor.
The restrictions in section 85(3) include the bar on alienating assets and on travel outside India without permission; see our article on sections 84 and 85. Because the application is made by the professional, a creditor who sees a breach has to bring it to the professional's notice, or consider an application under section 89.
Sub-section (2). The professional "may apply to the Adjudicating Authority for directions in relation to any other matter under this Chapter for which no specific provisions have been made." This is a gap-filling provision. It operates only within "this Chapter", Chapter II of Part III, and only where "no specific provisions have been made". Section 86(7)(b) also points to directions under section 90.
The section does not list the content of the directions or the consequences of ignoring them. This article does not add any.
No rules or regulations on the fresh start process are in the texts consulted, so the detail of forms and procedure is not given.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 88, 89 or 90 as printed in the texts consulted. 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 any change affecting Part III 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.
Need help meeting your duties in a fresh start?
Debtors sometimes lose ground not through the original application but through what they fail to report afterwards. A legal consultation can help you keep a running record of changes that section 88 requires you to tell the resolution professional, and advise on a replacement application if one is needed.
Key takeaways
- Section 88 imposes continuing duties: information, attendance, compliance and prompt reporting.
- A material error, omission or relevant change in financial circumstances must be reported as soon as reasonably possible.
- Either the debtor or a creditor may apply for replacement; the Adjudicating Authority refers the matter to the Board within seven days and the Board recommends a name within ten days.
- The replaced professional may be directed to share information and co-operate.
- Section 90 lets the professional seek directions on the debtor's restrictions and duties and on gaps in the Chapter.
Read next
- Sections 91 to 93: revocation, discharge order and standard of conduct
- Sections 86 and 87: objections by creditors
- Sections 97 and 98: appointment and replacement of the resolution professional
- The fresh start process under section 80
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.