Section 82 of the Insolvency and Bankruptcy Code, 2016: Appointment of Resolution Professional
Section 82 sets out how a resolution professional is confirmed, nominated and appointed when an eligible debtor applies for a fresh start under Section 80 of the Insolvency and Bankruptcy Code, 2016 (IBC).
What is the purpose of Section 82?
Section 82 is part of Chapter II (Fresh Start Process) of Part III of the IBC. It establishes a process for appointing an independent resolution professional to deal with a debtor's fresh start application. It addresses two situations: an application filed through a resolution professional and an application filed directly by the debtor.
Debtor: The individual who seeks relief under the fresh start provisions, subject to the statutory eligibility conditions. Resolution professional: An insolvency professional appointed by the Adjudicating Authority to perform the functions assigned by the Code. Board: The Insolvency and Bankruptcy Board of India (IBBI). Adjudicating Authority: The authority having jurisdiction under the applicable provisions of Part III of the IBC.
Section 82: Explanation of each subsection
Section 82(1): Application filed through a resolution professional
Where a debtor files an application under Section 80 through a resolution professional, the Adjudicating Authority must, within seven days of receiving the application, direct the Board to confirm whether any disciplinary proceedings are pending against that professional. This is a statutory suitability check before appointment.
Section 82(2): Confirmation or rejection by the Board
The Board must communicate its decision in writing to the Adjudicating Authority. It may either (a) confirm the appointment of the professional who filed the application or (b) reject that professional's appointment and nominate a suitable resolution professional for the fresh start process.
Section 82(3): Application filed directly by the debtor
If the debtor files the Section 80 application personally, without a resolution professional, the Adjudicating Authority must, within seven days of receiving it, direct the Board to nominate a resolution professional for the fresh start process.
Section 82(4): Ten-day nomination period
The Board must nominate a resolution professional within ten days after receiving the direction under Section 82(3). This ten-day period applies specifically to nomination following a debtor-filed application.
Section 82(5): Formal appointment by the Adjudicating Authority
The Adjudicating Authority appoints, by order, the resolution professional confirmed or nominated by the Board under Section 82(2) or Section 82(4), as applicable. The Board's confirmation or nomination is therefore followed by a formal appointment order.
Section 82(6): Copy of the fresh start application
The resolution professional appointed under Section 82(5) must be provided with a copy of the fresh start application. This enables the professional to examine the debtor's application and undertake subsequent statutory duties.
Appointment procedure and statutory timelines
- Application through a professional: The Adjudicating Authority seeks the Board's disciplinary-status confirmation within seven days of receiving the Section 80 application.
- Board's response: The Board confirms the proposed professional or rejects the appointment and nominates a suitable replacement, as provided by Section 82(2).
- Direct application: Where the debtor applies without a professional, the Adjudicating Authority directs the Board to nominate one within seven days of receipt.
- Nomination: The Board nominates a professional within ten days after receiving the direction under Section 82(3).
- Appointment and handover: The Adjudicating Authority makes the appointment order and the appointed professional receives the application.
The seven-day periods in subsections (1) and (3) concern directions by the Adjudicating Authority. The ten-day period in subsection (4) concerns nomination by the Board. Section 82 does not itself prescribe a universal deadline for the final appointment order.
Related IBC provisions
Section 80 - Application for fresh start: Provides for an eligible debtor's application for a fresh start process. Section 81 - Interim moratorium: Addresses the interim moratorium triggered by filing a Section 80 application. Section 83 - Examination of application: Deals with examination by the resolution professional. Section 84 - Admission or rejection: Governs the Adjudicating Authority's decision on the application. Section 85 - Moratorium: Addresses the moratorium following admission of the application.
Read the Insolvency and Bankruptcy Code, 2016 overview and the related Section 81 - Interim Moratorium article.
Official legal sources
- India Code - official central legislation database (search for the Insolvency and Bankruptcy Code, 2016 and Section 82).
- IBBI - Legal Framework (the Code, regulations, rules and notifications).
- Ministry of Corporate Affairs (government notifications and insolvency-related materials).
This article explains the statutory wording of Section 82 for general legal information. Commencement notifications, jurisdictional provisions and any later amendments should be verified from official sources before taking legal action.