Insolvency Resolution Professional (IRP) is appointed to conduct the insolvency resolution process in accordance with the procedure laid down in the Code. He is a professional with specialized knowledge, training and is recognized by the Insolvency Professional Agency and Insolvency and Bankruptcy Board of India for undertaking insolvency proceedings. The IRP is registered and regulated by the Board. They have a critical role in transactions under the Code. Insolvency Process under the Code starts with a Financial Creditor, an operational creditor or corporate applicant as the case may be who makes an application to the Adjudicating Authority about the debt default by the Corporate together with the name of IP who has consented to act as an interim IP. If no reference is made to the Board about the name of IP, the Adjudicating Authority makes reference to the Board. A financial creditor is a person to whom a financial debt is owed and the loan is disbursed against the consideration for the value of money borrowed etc. Operational debtor refers to an operational debt in respect of the provision of goods and services including employment, repayment of dues to the Govt. authorities, or any local authority.
Duties and functions of Insolvency Professionals:
The Make My Filing Insolvency process under the code should be completed in 180 days from the date of application by the applicant with a one-time extension of 90 days. The duties of an Insolvency professional are quite onerous having regard to the role and responsibility cast on the IP. The duties of IP are:
The code also specifies functions and obligations to be observed by the Insolvency Professionals. Where any insolvency resolution, fresh start, liquidation, or bankruptcy process has been initiated, it shall be the function of Insolvency Professionals to take such actions as may be necessary for the manner provided in the Code.
The Insolvency services professional occupies a strategic position and acts as an intermediary between the debtor/creditors on the one hand and the Adjudicating Authority on the other hand and functions under the watchful eyes of the Agency and the Board. The major benefit is that the process is strictly in a time-bound manner and there is no intervening by other legal authorities so the bank can recover their money in a timely and on the other side operational creditors whose money is due but not paid by debtors can be recovered through this legal process.