Interim Resolution Professional
Interim Resolution Professional is the Insolvency Professional proposed by the Resolution applicant and appointed by Adjudicating Authority to manage the affairs of Corporate Debtor from the date of such appointment till the date of appointment of Resolution Professional (the other Insolvency Professional) by Committee of Creditors.
Appointment of Interim Resolution Professional
The Adjudicating Authority shall appoint the Interim Resolution Professional within 14 days from the insolvency commencement date or date of admission of application for initiation of corporate insolvency resolution process.
Tenure of Interim Resolution Professional
The interim resolution professional shall be appointed for maximum period of 30 days until the appointment as the Resolution Professional subject to approval of committee of Creditors with 75% votes in favor otherwise some other Insolvency Professional is appointed as Resolution Professional in accordance with the directions of Adjudicating Authority.
Aftermath of Appointment of Interim Resolution Professional
The officers and managers of the Corporate Debtor, shall report to Resolution Professional. They shall provide him all the documents or records as required by him in the course of his duties. Where any personnel or promoters of Corporate Debtor are not assisting or not co-operating Resolution Professional, he may file an application to Adjudicating Authority for necessary instructions. Then, Adjudicating Authority shall direct accordingly.
Presiding Officer of Committee of Creditor
The Resolution Professional shall act as the chairperson in the meeting of Committee of Creditors.
Resolution Professional is the Insolvency Professional appointed by the Committee of Creditors in its First Meeting. Either the Interim Resolution Professional or the other Insolvency Professional may be appointed as Resolution Professional.
Duties and Powers of Resolution Professional
- To preserve and protect the assets of the corporate debtor, including the continued business operations of the corporate debtor.
- Represent and act on behalf of the corporate debtor with third parties, exercise rights for the benefit of the corporate debtor in judicial, quasi-judicial or arbitration proceedings;
- Raise interim finances subject to the approval of the committee of creditors;
- Appoint accountants, legal or other professionals in the manner as specified by Board;
- Maintain an updated list of claims;
- Convene and attend all meetings of the committee of creditors;
- Prepare the information memorandum;
- Invite prospective lenders, investors, and any other persons to put forward resolution plans;
- Present all resolution plans at the meetings of the committee of creditors;
- File application for avoidance of transactions in accordance with, if any; and
- Such other actions as may be specified by the Board.
Disclaimer – The above summary is based on the personal interpretation of the revised regulations, which may differ person to person. Hence, the readers are expected to take expert opinion before placing reliance on this article.