Appointment and tenure of interim resolution professional [ Section 16 ] - Insolvency Resolution And Liquidation For Corporate Persons - IBC

Appointment and tenure of interim resolution professional As per section 13(1)(c) ; The Adjudicating Authority, after admission of the application under section 7 or section 9 or section 10, shall, by an order- (c) appoint an interim resolution professional in the manner as laid down in section 16. Appointment and tenure of Interim Resolution Professional (IRP) [ Section 16 ] Appointment of Insolvency of Resolution Professional [ Section 16(1) ] The Adjudicating Authority shall appoint an interim resolution professional on the insolvency commencement date. Initiation of CIRP by Financial Creditor [ Section 16(2) ] Where the application for corporate insolvency resolution process is made by a financial creditor or the corporate debtor, as the case may be, the resolution professional, as proposed respectively in the application under section 7 or section 10, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him. Initiation of CIRP by Operational Creditor [ Section 16(3) ] Where the application for corporate insolvency resolution process is made by an operational creditor and- (a) no proposal for an interim resolution professional is made, the Adjudicating Authority shall make a reference to the Board for the recommendation of an insolvency professional who may act as an interim resolution professional; (b) a proposal for an interim resolution professional is made under sub-section (4) of section 9, the resolution professional as proposed, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him. Recommendation of Name interim resolution professional [ Section 16(4) ] The Board shall, within ten days of the receipt of a reference from the Adjudicating Authority under section 16(3), recommend the name of an insolvency professional to the Adjudicating Authority against whom no disciplinary proceedings are pending. Term of appointment of the interim resolution professional [ Section 16(5) read with Section 22] The term of the interim resolution professional shall continue till the date of appointment of the resolution professional under section 22 Appointment of resolution professional [ Section 22 ] Conduct of first First Meeting of committee of creditors [ Section 22(1) ] The first meeting of the committee of creditors shall be held within 7 days of the constitution of the committee of creditors. Appointment of interim Resolution Professional (IRP) [ Section 22(2) ] In the first meeting The committee of creditors, by a majority vote of not less than sixty-six per cent of the voting share of the financial creditors, either resolve to appoint the interim resolution professional as a resolution professional or to replace the interim resolution professional by another resolution professional. Continuation of same IRP as RP / Replacement of IRP [ Section 22(3) ] Where the committee of creditors resolves under section 22(2)- (a) to continue the interim resolution professional as resolution professional subject to a written consent from the interim resolution professional in the specified form, it shall communicate its decision to the interim resolution professional, the corporate debtor and the Adjudicating Authority; or (b) to replace the interim resolution professional, it shall file an application before the Adjudicating Authority for the appointment of the proposed resolution professional along with a written consent from the proposed resolution professional in the specified form. Adjudication Authority send the name of Resolution Professional to Board [ Section 22(4) ] The Adjudicating Authority shall forward the name of the resolution professional proposed under section 22(3)(b) to the Board for its confirmation and shall make such appointment after confirmation by the Board. How long the existing IRP can continue to function [ Section 22(5) ] Where the Board does not confirm the name of the proposed resolution professional within ten days of the receipt of the name of the proposed resolution professional, the Adjudicating Authority shall, by order, direct the interim resolution professional to continue to function as the resolution professional until such time as the Board confirms the appointment of the proposed resolution professional.