Sections 97 and 98 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.
When a debtor or a creditor files an application under section 94 or 95, someone has to run the insolvency resolution process. Section 97 explains how the resolution professional comes to be appointed. Section 98 explains how he is replaced. This article reads both as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. Section 99, which sets out the professional's report, is covered by our article on the insolvency professional in personal guarantor proceedings; the Amendment Act, 2026 changes it, and it is not explained here. For help with a live file, a legal consultation is a sensible start.
The Adjudicating Authority writes to the Board within seven days of the application, either to confirm that the resolution professional who filed it has no disciplinary proceedings pending or to ask for a nomination. The Board answers within seven days (confirmation case) or within ten days (nomination case), and the Adjudicating Authority appoints by order. To replace the professional, the debtor or creditor applies; the Authority refers it to the Board within seven days, the Board recommends a name within ten days, and the Authority passes an order. Creditors can also ask for replacement on a decision taken at a meeting of the creditors.
Section 97: appointment
Section 97 has two routes, like the fresh start appointment in section 82.
Route 1: the application is filed through a resolution professional.
- Sub-section (1): "If the application under section 94 or 95 is filed through a resolution professional, the Adjudicating Authority shall direct the Board within seven days of the date of the application to confirm that there are no disciplinary proceedings pending against resolution professional."
- Sub-section (2): the Board "shall within seven days of receipt of directions under sub-section (1) communicate to the Adjudicating Authority in writing either" (a) confirming the appointment of the resolution professional, or (b) rejecting the appointment and nominating another resolution professional for the insolvency resolution process.
Route 2: the debtor or creditor files himself.
- Sub-section (3): where an application under section 94 or 95 "is filed by the debtor or the creditor himself, as the case may be, and not through the resolution professional", the Adjudicating Authority shall direct the Board, within seven days of the filing, "to nominate a resolution professional for the insolvency resolution process".
- Sub-section (4): "The Board shall nominate a resolution professional within ten days of receiving the direction".
Appointment and copy.
- Sub-section (5): the Adjudicating Authority "shall by order appoint the resolution professional recommended under sub-section (2) or as nominated by the Board under sub-section (4)."
- Sub-section (6): the appointed professional "shall be provided a copy of the application for insolvency resolution process."
| Step | Who | Period printed | Sub-section |
|---|---|---|---|
| Direction to the Board | Adjudicating Authority | Within seven days of the date of the application (route 1) or of the filing (route 2) | (1), (3) |
| Confirmation or rejection with a nomination | Board | Within seven days of the direction | (2) |
| Nomination, where the applicant filed himself | Board | Within ten days of the direction | (4) |
| Appointment | Adjudicating Authority | By order; no period printed | (5) |
The section applies to applications under both section 94 (debtor) and section 95 (creditor). For those, see our articles on section 94 and on personal guarantor insolvency and the section 95 process. The disciplinary check is a feature of every route: the Board either confirms that no disciplinary proceedings are pending or nominates someone else.
Printing point: sub-section (1) reads "against resolution professional" without an article. It is quoted as printed.
Example. Anita Verma, a creditor, files an application under section 95 without engaging a professional. Within seven days the Adjudicating Authority directs the Board to nominate a resolution professional. The Board nominates within ten days of the direction. The Adjudicating Authority appoints the nominee by order, and the nominee receives a copy of Anita's application.
Section 98: replacement
Who may apply (sub-section (1)). "Where the debtor or the creditor is of the opinion that the resolution professional appointed under section 97 is required to be replaced, he may apply to the Adjudicating Authority for the replacement of the such resolution professional." The ground is the applicant's opinion; the section lists no grounds. (The words "the such" are printed so.)
Reference and recommendation (sub-sections (2) and (3)). The Adjudicating Authority "shall, within seven days of the receipt of the application under sub-section (1) make a reference to the Board for replacement". The Board "shall, within ten days of the receipt of a reference" from the Authority, "recommend the name of the resolution professional to the Adjudicating Authority against whom no disciplinary proceedings are pending."
Replacement on the creditors' decision (sub-section (4)). "Without prejudice to the provisions contained in sub-section (1), the creditors may apply to the Adjudicating Authority for replacement of the resolution professional where it has been decided in the meeting of the creditors, to replace the resolution professional with a new resolution professional for implementation of the repayment plan." This route belongs to the stage after a repayment plan is under way. Our articles on the meeting of creditors and implementation of the repayment plan deal with those stages.
Check on the proposed professional (sub-sections (5) and (6)). Where the Authority "admits an application made under sub-section (1) or sub-section (4)", it directs the Board to confirm that no disciplinary proceedings are pending against "the proposed resolution professional". The Board must then send a communication "within ten days of receipt of the direction", either (a) confirming appointment of the nominated professional or (b) rejecting it and recommending a new one. The text does not say who proposes the professional in the case of an application under sub-section (4); that is left silent.
Order and hand-over (sub-sections (7) and (8)). "On the basis of the communication of the Board under sub-section (3) or sub-section (6), the Adjudicating Authority shall pass an order appointing a new resolution professional." It "may give directions to the resolution professional replaced under sub-section (7)" to (a) share all information with the new professional in respect of the insolvency resolution process and (b) co-operate in such matters as may be required.
| Step | Who | Period printed | Sub-section |
|---|---|---|---|
| Reference to the Board | Adjudicating Authority | Within seven days of receipt of the application | (2) |
| Recommendation of a name | Board | Within ten days of receipt of the reference | (3) |
| Confirmation or rejection after admission of an application | Board | Within ten days of receipt of the direction | (6) |
| Order appointing the new professional | Adjudicating Authority | No period printed | (7) |
Points to watch
- Disciplinary check at every step. Both sections require the Board to speak to disciplinary proceedings, before the first appointment and before a replacement.
- Periods differ. The Board has seven days to respond where a professional filed the application (section 97(2)) and ten days where it nominates (sections 97(4), 98(3) and 98(6)).
- No period for the final order. Neither section 97(5) nor section 98(7) prints a time for the Adjudicating Authority's order.
- The section is silent on the consequences of delay. This article does not add any.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 is the regulation set for this process for personal guarantors; the copy consulted is amended up to 02-06-2026. No rules or regulations on other individuals or on partnership firms are in the texts consulted.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 97 or 98 as printed in the texts consulted. It does amend section 99 (section 52 of that Act), which follows these sections. 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 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 with the appointment or replacement of a professional?
Delay or dispute over who the resolution professional is can slow an entire process. A legal consultation can help you decide whether a replacement application is warranted, and prepare it within the periods that the sections print.
Key takeaways
- Section 97 covers both section 94 and section 95 applications.
- The Board either confirms the professional who filed, or nominates; the Adjudicating Authority appoints by order.
- Section 98 lets the debtor or a creditor apply for replacement, and creditors may do so on a decision at a meeting of the creditors.
- The Board recommends only a professional against whom no disciplinary proceedings are pending.
- The replaced professional can be directed to share information and co-operate.
Read next
- Section 100: admission or rejection of the application
- Sections 102 to 104: public notice, claims and the list of creditors
- Section 94: application by the debtor
- Individual insolvency under Part III of the IBC
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.