Section 25: Duties of the Resolution Professional under the IBC
Section 25 of the Insolvency and Bankruptcy Code, 2016 (IBC) sets out the responsibilities of a resolution professional (RP) during the corporate insolvency resolution process (CIRP). These duties focus on protecting the corporate debtor's assets, maintaining operations and enabling creditors to consider lawful resolution plans.
What does Section 25 require?
Section 25(1) establishes the overarching duty: the resolution professional must preserve and protect the assets of the corporate debtor, including the continuation of its business operations. Section 25(2) lists specific actions through which that duty is discharged.
Duties under Section 25(2), clause by clause
Section 25(2)(a): Take custody and control
Take immediate custody and control of the assets of the corporate debtor, including its business records. This is to safeguard property and preserve the information necessary for the resolution process.
Section 25(2)(b): Represent the corporate debtor
Represent and act for the corporate debtor in dealings with third parties and exercise its rights in judicial, quasi-judicial and arbitration proceedings.
Section 25(2)(c): Raise interim finance
Arrange interim finance where necessary, subject to the committee of creditors approval required under Section 28.
Section 25(2)(d): Engage professionals
Appoint accountants, lawyers and other professionals in accordance with applicable IBBI regulations.
Section 25(2)(e): Update creditor claims
Maintain an updated list of claims, reflecting verification and revisions during the corporate insolvency resolution process.
Section 25(2)(f): Conduct creditors meetings
Convene and attend meetings of the committee of creditors, following the statutory notice and meeting procedures.
Section 25(2)(g): Prepare information memorandum
Prepare the information memorandum under Section 29 and the applicable CIRP Regulations, subject to confidentiality requirements.
Section 25(2)(h): Invite eligible resolution applicants
Invite prospective resolution applicants meeting criteria fixed with the approval of the committee of creditors, having regard to the complexity and scale of the business and applicable IBBI conditions, to submit resolution plans.
Section 25(2)(i): Present resolution plans
Place resolution plans before the committee of creditors for consideration, subject to the statutory examination and process under Section 30.
Section 25(2)(j): Apply concerning suspect transactions
File an application before the Adjudicating Authority in respect of an avoidance transaction or fraudulent or wrongful trading, if any. This clause reflects the amendment brought into force in 2026.
Section 25(2)(k): Perform other specified functions
Carry out any additional actions prescribed by the Insolvency and Bankruptcy Board of India.
Important legal terms
Corporate debtor: A corporate person that owes a debt to any person (Section 3(8)). Resolution professional: An insolvency professional appointed to conduct the CIRP under the Code. Committee of creditors (CoC): The body constituted under Section 21, ordinarily comprising financial creditors, which takes specified commercial decisions during CIRP. Interim finance: Financial debt raised by the resolution professional during CIRP, or other debt notified as interim finance under the Code (Section 5(15)). Resolution plan: A plan proposed by a resolution applicant for insolvency resolution of the corporate debtor as a going concern, in accordance with Section 5(26).
Related legal provisions
Section 20: Preservation of value and management of operations by the interim resolution professional. Section 23: Conduct of the CIRP by the resolution professional. Section 24: Meetings of the CoC. Section 28: Actions requiring prior CoC approval. Section 29: Information memorandum. Section 29A: Persons ineligible to be resolution applicants. Section 30: Submission and consideration of resolution plans. Sections 43 to 51 and 66: Relevant avoidance, undervalued, extortionate credit and fraudulent or wrongful trading provisions, as applicable.
Practical significance
The RP must balance asset protection with procedural compliance. The RP does not simply act as a representative of one creditor: statutory duties require maintenance of records, engagement with the CoC, proper examination and presentation of plans, and applications concerning suspect transactions where warranted. Matters reserved to the CoC require the approvals specified by the Code.
Official legal sources and further reading
Consult the India Code official legislation portal for the updated statutory text, and the IBBI legal framework for the current CIRP Regulations, amendments, circulars and notifications. For the wider statute, read The Insolvency and Bankruptcy Code, 2016.
Updated: 21 October 2026. This article provides general legal information; consult the current statutory text and applicable regulations for a particular case.