Chapter II - Corporate Insolvency Resolution Process
Section 19
Section 19: who must cooperate with the insolvency professional?
Section 19 requires people connected with the corporate debtor to give the interim resolution professional all the assistance and cooperation needed to manage the debtor's affairs. If they do not, the professional can apply to the tribunal for directions. From 26 May 2026 the duty also covers former personnel and persons engaged under a contract for service, and it applies equally to the resolution professional.
On this page
Need advice on Section 19?
This article is for general information. Refer to the Insolvency and Bankruptcy Code, 2016 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) Any person who is or has been a personnel of the corporate debtor or its promoter or associated with the management of the corporate debtor, or engaged in a contract for service with the corporate debtor, shall extend all assistance and cooperation to the interim resolution professional as may be required by him for the purposes of managing the affairs of the corporate debtor or performing the duties conferred on him under this Chapter.
(2) Where any person referred to in sub-section (1) or any other person required to assist or cooperate with the interim resolution professional does not assist or cooperate, the interim resolution professional may make an application to the Adjudicating Authority for necessary directions.
(3) The Adjudicating Authority, on receiving an application under sub-section (2), shall by an order, direct such person referred to in sub-section (1) or other person to comply with the instructions of the interim resolution professional and to cooperate with him in collection of information and management of the corporate debtor.
Explanation.—For the purposes of this section, it is hereby clarified that references to the interim resolution professional shall also include references to the resolution professional.
Introduction
Section 12 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026, in force from 26 May 2026 under S.O. 2625(E), rewrote this section. The marginal heading now says "Persons" instead of "Personnel". Subsection (1) was substituted to cover anyone who is or has been personnel of the corporate debtor or its promoter, anyone associated with its management, and anyone engaged in a contract for service with it. The duty now extends to the professional's duties under Chapter II as well as management of the debtor's affairs.
Subsections (2) and (3) were aligned to the new subsection (1), and subsection (3) now refers to the interim resolution professional's instructions. A new Explanation makes references to the interim resolution professional include the resolution professional. Section 34(3), substituted by the same Act, applies Section 19 to liquidation and voluntary liquidation with references to the liquidator.
Key takeaways
Wider circle of persons
The duty covers present and former personnel of the corporate debtor or its promoter, persons associated with its management, and persons engaged in a contract for service with it.
Purpose extended
Cooperation is owed for managing the corporate debtor's affairs and for performing the professional's duties under Chapter II, such as collecting information and verifying claims.
Applies to the RP as well
The 2026 Explanation removes doubt that the section also protects the resolution professional after the IRP stage.
Tribunal directions on application
Where a person does not cooperate, the professional applies under subsection (2), and the tribunal directs compliance under subsection (3).
Who is covered
"Personnel" is defined in Section 5(23) to include directors, managers, key managerial personnel, designated partners and employees, if any, of the corporate debtor. The 2026 wording covers any person who "is or has been a personnel of the corporate debtor or its promoter", persons associated with its management, and persons engaged in a contract for service with it. The pre-2026 text named the personnel, the promoters and other persons associated with management. Subsection (2) also reaches "any other person" required to assist or cooperate.
Handing over assets and records
Regulation 3A of the CIRP Regulations, retitled "Duty to extend assistance and cooperation" from 2 June 2026, refers to "any person as covered under section 19". Such a person must give the professional a list of assets and records while handing over custody and control. The professional must requisition information and assets that were required to be maintained but have not been handed over.
Under Regulation 3A(7), an application under Section 19(2) for failure to hand over an asset or record must show the asset or record in the notice of requisition and its absence from the custody lists.
Applying to the tribunal
Before applying, the professional should be able to show what was requested, from whom and when, and what was not provided. The tribunal's order under subsection (3) directs the person to comply with the professional's instructions and to cooperate in collecting information and managing the corporate debtor.
Practical checklist
Do
- Send written, specific requisitions for records and assets, and keep proof of delivery.
- Identify former directors, key staff and outsourced service providers who hold information.
- Prepare signed custody lists when assets or records are handed over.
- If you are a former officer or contractor, respond to requisitions; the 2026 wording covers you.
Avoid
- Do not assume that resigning before the insolvency commencement date ends the duty to cooperate.
- Do not apply to the tribunal without a documented requisition and a record of the gaps.
Glossary
- Personnel
- Directors, managers, key managerial personnel, designated partners and employees, if any, of the corporate debtor (Section 5(23)).
- Contract for service
- An engagement of an independent contractor or service provider, as distinct from employment.
Frequently asked questions
Does Section 19 apply to former directors and employees?
Yes. Since 26 May 2026, subsection (1) covers any person who is or has been personnel of the corporate debtor or its promoter.
Does the duty apply once a resolution professional replaces the IRP?
Yes. The 2026 Explanation says references to the interim resolution professional also include the resolution professional.
What happens if someone refuses to cooperate?
The professional may apply to the tribunal under subsection (2). The tribunal then directs the person by order to comply with the professional's instructions and to cooperate.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026