Section 19 of IBC: Cooperation with the Interim Resolution Professional
Section 19 of the Insolvency and Bankruptcy Code, 2016 (IBC) imposes a statutory duty to assist the interim resolution professional (IRP) in obtaining information and managing the corporate debtor during the corporate insolvency resolution process (CIRP). The provision was amended in 2026 to clarify and expand the persons covered and its application to resolution professionals.
What does Section 19 provide?
Following the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (Act 6 of 2026), effective for the relevant amendments from 26 May 2026, Section 19 is titled "Persons to extend cooperation to interim resolution professional". The section comprises three subsections and an Explanation.
Section 19(1): Duty to assist and cooperate
The amended provision requires the persons specified in the subsection, including personnel and promoters of the corporate debtor and persons associated with its management, to provide assistance and cooperation required for the IRP to manage the corporate debtor. The 2026 changes broaden the statutory formulation of the persons obliged to cooperate. Consult the current official consolidated text for the precise amended list and wording.
Section 19(2): Application where cooperation is withheld
If a person required to cooperate fails or refuses to do so, the IRP may apply to the Adjudicating Authority for necessary directions. This provides a formal remedy for obstruction, non-disclosure or failure to supply information needed in the insolvency process.
Section 19(3): Directions of the Adjudicating Authority
Upon an application under subsection (2), the Adjudicating Authority must order the relevant person to comply with the IRP's instructions and cooperate in collecting information and managing the corporate debtor, as provided in the amended section.
Explanation: References to resolution professionals
The Explanation inserted in 2026 clarifies that references to the interim resolution professional in Section 19 also include references to the resolution professional (RP). The cooperation obligation therefore continues to be relevant after an RP takes over the process.
Meaning of important legal terms
- Corporate debtor: A corporate person that owes a debt to any person, as defined in Section 3(8) of the IBC.
- Interim resolution professional (IRP): The insolvency professional appointed under Section 16 to perform the initial statutory functions in CIRP.
- Resolution professional (RP): The insolvency professional appointed to conduct the CIRP in accordance with the Code, including Sections 22 and 23.
- Adjudicating Authority: For insolvency resolution and liquidation of corporate persons, the NCLT having territorial jurisdiction, under Section 60.
- CIRP: Corporate insolvency resolution process, the statutory process for attempting resolution of a corporate debtor's insolvency.
What cooperation may involve in practice
Depending on the lawful requirements of the IRP or RP and the facts of the case, cooperation may involve:
- Providing books of account, financial statements, statutory registers and supporting records.
- Explaining assets, liabilities, transactions, operations and existing contracts.
- Giving access to relevant business systems, premises and records.
- Helping identify and safeguard corporate assets and maintain business continuity.
- Responding promptly to documented requests for information.
These examples illustrate practical compliance and do not replace the precise statutory obligations or tribunal directions.
How Section 19 works with other IBC provisions
Section 17 addresses the vesting of management powers in the IRP; Section 18 sets out the IRP's duties to gather information and take control and custody of relevant assets; and Section 20 concerns operating the corporate debtor as a going concern. Section 19 supports these functions by requiring cooperation from the persons covered by the law.
The IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, as amended, also provide relevant procedural requirements. The latest regulations and notifications should be checked when dealing with a particular case.
What happens if a person does not cooperate?
- The IRP or RP identifies the information or assistance needed and records the failure to cooperate.
- An application may be filed under Section 19(2) before the jurisdictional NCLT seeking appropriate directions.
- The NCLT considers the application and issues directions in accordance with Section 19(3).
- Any further action depends on the terms of the order and applicable law; non-cooperation does not itself establish an automatic criminal penalty under Section 19.
Frequently asked questions
Does Section 19 apply only to directors?
No. The section extends beyond directors to the categories of persons specified in its current amended wording, including relevant personnel, promoters and persons connected with management.
Can an RP invoke Section 19 after replacing the IRP?
Yes. The Explanation inserted in 2026 clarifies that references to the IRP in this section include the RP.
Which tribunal can issue directions?
For a corporate debtor, the competent NCLT is the Adjudicating Authority under Section 60 of the IBC.
Official legislation and further reading
- India Code - official central legislation database (search for the Insolvency and Bankruptcy Code, 2016 and Section 19).
- IBBI legal framework - updated Acts, notifications and regulations.
- Insolvency and Bankruptcy Board of India - official website.
- The Insolvency and Bankruptcy Code, 2016 - LawDadi guide.