Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016

Regulation 3. Eligibility for resolution professional

(1)

An insolvency professional shall be eligible to be appointed as ¹³[an interim resolution professional or a resolution professional, as the case may be,] for a corporate insolvency resolution process of a corporate debtor if he, and all partners and directors of the insolvency professional entity of which he is a partner or director, are independent of the corporate debtor. Explanation– A person shall be considered independent of the corporate debtor, if he:

(a)

is eligible to be appointed as an independent director on the board of the corporate debtor under section 149 of the Companies Act, 2013 (18 of 2013), where the corporate debtor is a company;

(b)

is not a related party of the corporate debtor; or

(c)

is not an employee or proprietor or a partner:

(i)

of a firm of auditors or ¹⁴[secretarial auditors] in practice or cost auditors of the corporate debtor; or

(ii)

of a legal or a consulting firm, that has or had any transaction with the corporate debtor amounting to ¹⁵[five per cent] or more of the gross turnover of such firm, in the last three financial years. ¹⁶[***] Regulation 3

(i)

, before substitution, stood as under: “

(i)

of a firm of auditors or company secretaries in practice or cost auditors of the corporate debtor; or”. Regulation 3

(3)

, before substitution, stood as under: “

(3)

A resolution professional, who is a director or a partner of an insolvency professional entity, shall not continue as a resolution professional in a corporate insolvency resolution process if the insolvency professional entity or any other partner or director of such insolvency professional entity represents any of the other stakeholders in the same corporate insolvency resolution process.”.

¹³ Substituted by Notification No. IBBI/2021-22/GN/REG075, dated 14th July, 2021 (w.e.f. 14-07-2021). Before substitution, the words stood as under: “a resolution professional”.

¹⁴ Substituted by Notification No. IBBI/2017-18/ GN/ REG030, dated 27th March, 2018 (w.e.f.01-04-2018).

¹⁵ Substituted by Notification No. IBBI/2018-19/GN/REG031, dated 3rd July, 2018 (w.e.f. 04-07-2018). Before substitution, the words stood as under: “ten per cent”

¹⁶ Omitted by Notification No IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Prior to omission, it stood as under:- “16[(1A) Where the committee decides to appoint the interim resolution professional as resolution professional or replace the interim resolution professional under section 22 or replace the resolution professional under section 27, it shall obtain the written consent of the proposed resolution professional in Form AA of the ¹⁶[Schedule-I ].]]”. ¹⁷[(1A) Where the committee of creditors, in its first meeting, resolves under clause (a) of sub- section (3) of section 22 of the Code to appoint the interim resolution professional as the resolution professional, the interim resolution professional shall intimate such decision to the corporate debtor, the Board and the Adjudicating Authority, within three days of the date of such resolution. (1B) Where the committee decides to replace the interim resolution professional under section 22 or replace the resolution professional under section 27, it shall obtain the written consent of the proposed resolution professional in such form as notified by the Board through circular.] (2) ¹⁸[An interim resolution professional or a resolution professional, as the case may be,] shall make disclosures at the time of his appointment and thereafter in accordance with the Code of Conduct. ¹⁹[(3) An interim resolution professional or a resolution professional, who is a director or a partner of an insolvency professional entity, shall not continue as the interim resolution professional or resolution professional, as the case may be, in a corporate insolvency resolution process, if the insolvency professional entity or any other partner or director of such insolvency professional entity represents any other stakeholder in that corporate insolvency resolution process.] ²⁰[3A. ²¹[ Duty to extend assistance and cooperation.] (1) The interim resolution professional or resolution professional, as the case may be, shall take custody and control as specified under this regulation from ²²[ any person as covered under section 19], of the following:-

¹⁷ Inserted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026).

¹⁸ Substituted by Notification No. IBBI/2021-22/GN/REG075, dated 14th July, 2021 (w.e.f. 14-07-2021). Before substitution, the words stood as under: “a resolution professional”.

¹⁹ Substituted by Notification No. IBBI/2021-22/GN/REG075, dated 14th July, 2021 (w.e.f. 14-07-2021).

²⁰ Inserted by Notification No. No. IBBI/2023-24/GN/REG106, dated 18th September, 2023 (w.e.f. 18-09-2023).

²¹ Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “Assistance and cooperation by the personnel of the corporate debtor.”.

²² Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “the personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor as the case may be”. (a) the records of information relating to the assets, finances and operations of the corporate debtor referred in clause (a) of section 18 and such other information required under regulation 36 ²³[in such format as notified by the Board]; (b) the assets recorded in the balance sheet of the corporate debtor or in any other records referred in clause (f) of section 18. (2) ²⁴[Any person as covered under section 19] shall provide to the interim resolution professional or resolution professional, as the case may be, a list of assets and records while handing over their custody and control, and the interim resolution professional or resolution professional may, after taking such custody and control, if deemed necessary, identify person(s) in whose possession these assets and records will be held. (3) Where any asset or record has not been handed over or the list has not been provided under sub-regulation (2), the interim resolution professional or resolution professional, as the case may be, shall himself prepare a list of assets and records while taking custody and control of assets and records, and the interim resolution professional or resolution professional may, after taking such custody and control, if deemed necessary, identify person(s) in whose possession these assets and records will be held. (4) Each list of assets and records under sub-regulation (2) and (3) shall be signed by the parties present and by at least two individuals who have witnessed the act of taking control and custody of such assets and records. (5) The interim resolution professional or resolution professional, as the case may be, shall requisition from ²⁵[ any person as covered under section 19], the information relating to the assets, finances and operations of the corporate debtor referred in clause (a) of section 18 and such information required under regulation 36 which were required to be maintained by the corporate debtor but have not yet been handed over. (6) The interim resolution professional or resolution professional, as the case may be, shall requisition from ²⁶[ any person as covered under section 19], the assets which are recorded in the

²³ Inserted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026).

²⁴ Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “The personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor”.

²⁵ Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “the personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor as the case maybe”.

²⁶ Substituted by Notification No. IBBI/2026-27/GN/REG152, dated 01st June, 2026 (w.e.f. 02-06-2026). Before substitution, the words stood as under: - “the personnel of the corporate debtor, its promoters or any other person associated with the management of the corporate debtor as the case maybe”. balance sheet or in any other records referred in clause (f) of section 18 and whose custody has not been handed over. (7) An application made under sub-section (2) of section 19 in respect of failure to provide any asset or record as requisitioned under the Code and this regulation, shall show presence of such asset or record in the notice of requisition and absence of such asset or record in the list of assets and records taken in control and custody under sub-regulation (2) and (3).]