Insolvency and Bankruptcy Code, 2016

Section 18: Duties of the Interim Resolution Professional under the IBC

Section 18 of the Insolvency and Bankruptcy Code, 2016 sets out the principal duties of an interim resolution professional (IRP) during the corporate insolvency resolution process (CIRP). These duties cover information gathering, creditor claims, constitution of the committee of creditors, ongoing management and custody of corporate debtor assets.

Scope: This article explains Section 18 and its statutory exclusions. For the authoritative text and the latest amendments and regulations, consult the IBC text published by IBBI and the IBBI legal framework.

Meaning of important terms

Interim resolution professional (IRP): The insolvency professional appointed under Section 16 to perform the initial functions of the CIRP. Corporate debtor: A corporate person that owes a debt, as defined in Section 3(8). Insolvency commencement date: The date of admission of an application to initiate CIRP by the adjudicating authority under Section 5(12). Information utility: An entity registered with IBBI to provide core information services under the Code.

Section 18: Clause-wise duties explained

Section 18(a): Collect financial and operational information

Obtain details of business operations and financial and operational payments for the preceding two years, a list of assets and liabilities on the insolvency commencement date, and other prescribed information.

Section 18(b): Receive and collate creditor claims

Receive and collate claims submitted following the public announcement under sections 13 and 15. Verification and determination of claims are governed by the applicable CIRP Regulations.

Section 18(c): Constitute the committee of creditors

Form the committee of creditors (CoC), subject to section 21 and the relevant regulations.

Section 18(d): Monitor assets and manage operations

Monitor corporate debtor assets and manage its operations until the resolution professional is appointed in accordance with the Code.

Section 18(e): File information with an information utility

File the information collected with an information utility where necessary.

Section 18(f): Take control and custody of qualifying assets

Take control and custody of assets over which the corporate debtor has ownership rights, including overseas assets, assets held by others, movable and immovable property, intellectual property, securities, financial instruments, insurance policies, and assets whose ownership is under adjudication.

Section 18(g): Perform other prescribed duties

Perform any additional duties specified by the Insolvency and Bankruptcy Board of India (IBBI).

What assets may be taken into custody under Section 18(f)?

Section 18(f) extends to assets over which the corporate debtor has ownership rights, as recorded in its balance sheet or relevant information utility, securities depository or other ownership registry. The provision expressly covers:

Assets situated outside India over which the corporate debtor has ownership rights.
Assets whether or not they are in the debtor's physical possession.
Tangible movable and immovable property.
Intangible property, including intellectual property rights.
Securities, including shares held in subsidiaries, financial instruments and insurance policies.
Assets whose ownership is awaiting determination by a court or authority.

Explanation to Section 18: Assets excluded from IRP custody

The statutory explanation makes clear that the expression assets for the purposes of Section 18 does not include:

Third-party-owned assets held by the corporate debtor under a trust or contractual arrangement, including bailment.
Assets belonging to an Indian or foreign subsidiary of the corporate debtor, as distinct from shares in that subsidiary owned by the corporate debtor.
Other assets notified by the Central Government in consultation with a financial sector regulator.

Practical distinction: Possession does not automatically establish ownership. The IRP should verify title, contractual rights, registers and relevant records before treating property as an asset of the corporate debtor.

How Section 18 relates to other provisions

Section 13: Admission order, moratorium and public announcement.
Section 15: Contents of the public announcement and invitation of claims.
Section 16: Appointment and tenure of the IRP.
Section 17: Vesting of management powers in the IRP and suspension of board powers.
Section 19: Personnel and promoters must extend cooperation to the IRP.
Section 20: Duty to preserve the value of the corporate debtor's property and manage operations as a going concern.
Section 21: Constitution of the committee of creditors.
Section 22: Appointment of the resolution professional by the committee of creditors.
Section 25: Duties of the resolution professional after appointment.

Compliance with IBBI regulations

The statutory duties operate alongside the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as amended, including provisions governing public announcements, submission and verification of claims, creditor lists, the committee of creditors and CIRP records. Applicable timelines and forms should be checked against the consolidated regulations in force for the relevant proceeding.

Practical implications for creditors and management

Creditors should respond to the public announcement and submit supporting documentation in the prescribed manner. Corporate debtor management should provide complete books, financial information, asset records and cooperation as required by Sections 17 and 19. The IRP should document the basis for asset custody decisions and distinguish property owned by the debtor from third-party property.

Official sources and further reading

Last reviewed: 21 October 2026. This article provides general legal information, not case-specific legal advice. Statutory amendments, notifications and judicial interpretations should be verified before reliance.