Section 16. Appointment and tenure of interim resolution professional. –

(1) The Adjudicating Authority shall appoint an interim resolution professional ¹[on the insolvency commencement date].

(2) Where the application for corporate insolvency resolution process is made by a financial creditor or the corporate debtor, as the case may be, the resolution professional, as proposed respectively in the application under section 7 or section 10, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him.

(3) Where the application for corporate insolvency resolution process is made by an operational creditor and-

• (a) no proposal for an interim resolution professional is made, the Adjudicating Authority shall make a reference to the Board for the recommendation of an insolvency professional who may act as an interim resolution professional;
• (b) a proposal for an interim resolution professional is made under sub-section (4) of section 9, the resolution professional as proposed, shall be appointed as the interim resolution professional, if no disciplinary proceedings are pending against him.

(4) The Board shall, within ten days of the receipt of a reference from the Adjudicating Authority under sub-section (3), recommend the name of an insolvency professional to the Adjudicating Authority against whom no disciplinary proceedings are pending.

(5) The term of the interim resolution professional ²[shall continue till the date of appointment of the resolution professional under section 22].

CASE LAWS

1. An Ex-Employee of the FC cannot be appointed as the IRP.

(Reference: NCLAT Order dated 22.05.2020 in the matter of State Bank Of India Vs. Metenere Ltd. Company Appeal (AT) (Insolvency)  No.76 of 2020)

2. The appointment and tenure of IRP are prescribed under Section 16 of the code. Any extension beyond the said period requires consent of IRP.

(Reference: NCLT Order dated 24.08.2018 in the matter of Dharmendra Kumar Vs. IBBI & Ors. Company Appeal (AT) (Insolvency) No. 313 of 2018)

3. IRP performing duties under CIRP acts as an officer of court any hindrance in the work of IRP would amount to contempt of Court.

(Reference: NCLT Order dated 02.01.2019 in the matter of Asset Reconstruction Company (India) Pvt. Ltd. Vs. Shivam Water Treaters Pvt. Ltd. Company Petition No. (IB) 1882 (MB)/2018)

1. Subs. by Act No. 1 of 2020, sec.6 (w.e.f. 28-12-2019). Before substitution, it stood as “within fourteen days from the insolvency commencement date”.
2. Subs. by Act No.26 of 2018, sec. 12, for the words “shall not exceed thirty days from date of his appointment” (w.e.f. 6-6-2018).