Section 17. Management of affairs of corporate debtor by interim resolution professional. –

(1) From the date of appointment of the interim resolution professional, –

• (a) the management of the affairs of the corporate debtor shall vest in the interim resolution professional;
• (b) the powers of the board of directors or the partners of the corporate debtor, as the case may be, shall stand suspended and be exercised by the interim resolution professional;
• (c) the officers and managers of the corporate debtor shall report to the interim resolution professional and provide access to such documents and records of the corporate debtor as may be required by the interim resolution professional;
• (d) the financial institutions maintaining accounts of the corporate debtor shall act on the instructions of the interim resolution professional in relation to such accounts and furnish all information relating to the corporate debtor available with them to the interim resolution professional.

(2) The interim resolution professional vested with the management of the corporate debtor, shall-

• (a) act and execute in the name and on behalf of the corporate debtor all deeds, receipts, and other documents, if any;
• (b) take such actions, in the manner and subject to such restrictions, as may be specified by the Board;
• (c) have the authority to access the electronic records of corporate debtor from information utility having financial information of the corporate debtor;
• (d) have the authority to access the books of accounts, records and other relevant documents of corporate debtor available with government authorities, statutory auditors, accountants and such other persons as ¹[may be specified; and]
• (e) ²[be responsible for complying with the requirements under any law for the time being in force on behalf of the corporate debtor.]

CASE LAWS

1. RP is required to act in terms of sec 17(2) of the code for complying with the requirements under SEBI and the regulations framed thereunder.

(Reference: NCLAT Order dated 09.05.2017 in the matter of Bohar Singh Dhillon Vs. Rohit Sehgal (IRP) & Ors. Company Appeal (AT) (Insolvency) No. 665 of 2018)

2. IRP has not been vested with any specific power to sue any person on behalf of the CD.

(Reference: NCLAT Order dated 29.08.2017 in the matter of Steel Konnect (India) Pvt. Ltd. Vs. Hero Fincorp Ltd. Company Appeal (AT) (Insolvency) No. 51 of 2017)

1. Subs. by Act No. 26 of 2018, sec. 13 (i), for the words “may be specified” (w.e.f. 6-6-2018).
2. Ins. by Act No. 26 of 2018, sec. 13 (ii) (w.e.f. 6-6-2018).