Interim Resolution Professional (IRP)
Enforced with the objective of time-bound insolvency resolution and maximization of assets, the Insolvency Bankruptcy Code, 2016 (hereinafter referred to as "IBC"), in order to facilitate the process of insolvency resolution, has provision for appointment of an insolvency resolution professional (hereinafter referred to as "IRP").
According to the provisions of the IBC, the erstwhile management of the debtor is divested of its powers and the same is then vested in an IRP. The IRP then continues the business of the corporate body as a going concern until a resolution plan is drawn up, which enables the corporate body to pay back its debts. The IRP is duty-bound to monitor the assets of the debtor and claims made against it and constitute a committee of creditors. The control and custody of the assets of the debtor may be taken over by the IRP.
The IBC ensures implication of strict measures against unscrupulous debtors escaping and delaying the repayment of debts incurred by using the legislative framework and thus prevents the scope of one taking advantage of their own wrong. The IRPs take up the management of the debtor with themselves separating the management who were taking care of the affairs of the Company earlier. The IBC is aimed with the objective to accord another opportunity to the dying debtor entity by taking over its responsibility of management and thereby helping it to get back on its feet.
Primary duties of an IRP :
1. Public Announcement regarding initiation of CIRP immediately after his appointment.
2. To collect all information relating to the assets, liabilities and operations of the corporate debtor for determining the financial position of the corporate debtor, including information relating to:-
a) business operations for the previous two years;
b) financial and operational payments for the previous two years;
c) list of assets and liabilities as on the CIRP commencement date; and such other matters as may be specified;
3. To receive and collate all the claims submitted by financial creditors, operational creditors, workmen and employees.
a) To verify all claims, ask for proof of debts and documents to substantiation of their claims.
b) To determine the value of each claim after verification from documents submitted by claimants and presentations made before the IRP.
c) To prepare a list of creditors, submit the same before the Adjudicating Authority and present the list before the committee of creditors.
4. To constitute a committee of creditors.