Insolvency and Bankruptcy Code, 2016 | Section 97

Section 97 IBC: Appointment of Resolution Professional

Section 97 explains how a resolution professional is selected and appointed after a debtor or creditor applies under Section 94 or Section 95 of the Insolvency and Bankruptcy Code, 2016. It assigns distinct responsibilities and statutory timelines to the Adjudicating Authority and the Insolvency and Bankruptcy Board of India (IBBI).

Scope: The personal insolvency provisions currently in operation are especially relevant to personal guarantors to corporate debtors. Their application to other individuals and partnership firms depends on the commencement notifications and applicable legal framework. Section 97 is not the procedure for appointing a corporate insolvency resolution professional under Part II.

Meaning and purpose of Section 97

A resolution professional is an insolvency professional appointed to perform functions assigned under the Code, including examining the application and preparing a report under Section 99. The Adjudicating Authority is the forum empowered to make the appointment; for personal guarantors to corporate debtors, jurisdiction is determined with reference to Section 60 and applicable notifications. The Board means IBBI, established under Section 188.

Section 97 explained subsection by subsection

Section 97(1)

Where an application under Section 94 or 95 is filed through a resolution professional, the Adjudicating Authority must, within seven days from the application date, direct the Insolvency and Bankruptcy Board of India (IBBI) to confirm that no disciplinary proceedings are pending against that professional.

Section 97(2)

Within seven days after receiving that direction, IBBI must communicate in writing either confirmation of the proposed professional or rejection of the proposed appointment together with nomination of another resolution professional.

Section 97(3)

Where the debtor or creditor files directly without a resolution professional, the Adjudicating Authority must, within seven days of filing, direct IBBI to nominate a resolution professional.

Section 97(4)

IBBI must nominate a resolution professional within ten days after receiving the direction under subsection (3).

Section 97(5)

The Adjudicating Authority appoints, by order, the professional confirmed or nominated by IBBI under the preceding provisions.

Section 97(6)

The appointed resolution professional must be provided with a copy of the insolvency resolution application.

Appointment procedure and statutory time limits

Application filed through a professional: The Adjudicating Authority requests IBBI confirmation within seven days of filing; IBBI responds within seven days of receiving the request.
Application filed directly: The Adjudicating Authority requests a nomination within seven days of filing; IBBI nominates within ten days of receiving the request.
Formal appointment: The Adjudicating Authority makes the appointment by order and the appointee receives the application.
Examination: Under Section 99, the appointed professional examines the application and submits a reasoned recommendation within ten days of appointment.

These are statutory periods for specified steps; they should not be added together as a guaranteed overall disposal time. Appointment of a resolution professional does not itself mean the insolvency application has been admitted.

How Section 97 relates to other IBC provisions

Section 94: Application by a debtor to initiate the insolvency resolution process.
Section 95: Application by a creditor to initiate the insolvency resolution process.
Section 96: Interim moratorium commencing upon filing, subject to the applicable statutory conditions.
Section 98: Replacement of a resolution professional in circumstances covered by that provision.
Section 99: Examination and recommendation by the resolution professional.
Section 100: Admission or rejection of the application by the Adjudicating Authority.
Section 208: Functions, obligations and code-of-conduct requirements for insolvency professionals.

Practical considerations

Applicants should verify the proposed professional's registration and eligibility, ensure that the correct application and supporting documents are filed, and track directions to IBBI. Where a professional is not proposed, the statutory nomination route applies. The professional's recommendation under Section 99 is not a final adjudication; that decision is made under Section 100.

Official legislation and regulatory references

For the broader statutory context, see The Insolvency and Bankruptcy Code, 2016.

Last reviewed: 23 October 2026. This is general legal information, not advice for a particular proceeding. Check current commencement notifications, rules, regulations and judicial orders before filing.