Chapter II - Corporate Insolvency Resolution Process
Section 23
Section 23: who conducts CIRP
The resolution professional conducts CIRP and manages the corporate debtor during the process. Section 23 also deals with continuity of management while the tribunal decides a plan or liquidation and requires the interim professional to hand over records when replaced.
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Need advice on Section 23?
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) Subject to section 27, the resolution professional shall conduct the entire corporate insolvency resolution process and manage the operations of the corporate debtor during the corporate insolvency resolution process period:
Provided that the resolution professional shall continue to manage the operations of the corporate debtor after the expiry of the corporate insolvency resolution process period, until an order approving the resolution plan under sub-section (1) of section 31 or appointing a liquidator under section 34 is passed by the Adjudicating Authority.
(2) The resolution professional shall exercise powers and perform duties as are vested or conferred on the interim resolution professional under this Chapter.
(3) In case of any appointment of a resolution professional under sub-sections (4) of section 22, the interim resolution professional shall provide all the information, documents and records pertaining to the corporate debtor in his possession and knowledge to the resolution professional.
Introduction
The proviso to subsection (1) was substituted in 2020; the older wording tied continuation to a submitted resolution plan and should not be used as the current rule. The 2026 IBC Amendment Act does not change Section 23. Its process-management power remains subject to Section 27 and the Code's other safeguards.
Key takeaways
One professional conducts the process
Subject to replacement under Section 27, the resolution professional conducts CIRP and manages the debtor's operations during the process period.
Management continues while an order is pending
After the process period expires, the professional continues until the tribunal approves a plan under Section 31(1) or appoints a liquidator under Section 34.
Records must transfer
When a new resolution professional is appointed under Section 22(4), the interim professional must hand over information, documents and records concerning the debtor.
Track who holds the role
Check the committee and tribunal record for the appointed resolution professional. Section 27 provides the replacement process; authority should be traced to the actual appointment.
Maintain operations across the timeline
The professional's management role continues during CIRP and, under the proviso, through the period after process expiry until the specified plan-approval or liquidator-appointment order. The case's orders and other Code restrictions still apply.
Complete the interim-to-resolution handover
When Section 22(4) results in appointment of a resolution professional, preserve a documented handover of the debtor's information, documents and records, including what was known to the interim professional.
Practical checklist
Do
- Keep the appointment, any replacement decision and tribunal orders together in the case record.
- Document the transfer of records from interim to resolution professional.
- Check whether a plan-approval or liquidator-appointment order has ended the continuation under the proviso.
Avoid
- Do not rely on the superseded pre-2020 proviso.
- Do not assume expiry of the CIRP period alone ends the professional's management role.
Glossary
- Resolution professional
- The insolvency professional conducting CIRP after appointment under the Code.
- Interim resolution professional
- The professional appointed at the start of CIRP who must hand over records when a resolution professional is appointed under Section 22(4).
Frequently asked questions
Does the RP stop managing the debtor when the CIRP period expires?
Not solely for that reason. The current Section 23(1) proviso continues management until the specified plan-approval or liquidator-appointment order.
Who hands over documents when the RP is appointed?
Under Section 23(3), the interim professional provides the debtor's information, documents and records in their possession and knowledge to the appointed resolution professional.
Need help applying this provision to your situation?
Contact BizeneedLast updated 9 October 2026