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Section 25: Duties of Resolution Professional under the Insolvency and Bankruptcy Code 2016

Section 25 of the Insolvency and Bankruptcy Code, 2016 (IBC) sets out the principal statutory duties of a resolution professional during the corporate insolvency resolution process (CIRP). The provision requires the resolution professional to preserve and protect the assets of the corporate debtor, including its continued business operations, and specifies the actions that must be undertaken for that purpose.

Current law: Section 25(2)(j) was substituted by section 15 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026. The amendment came into force on 26 May 2026. Clause (j) now expressly covers an application to the Adjudicating Authority in respect of an avoidance transaction or fraudulent or wrongful trading.

Text of Section 25 - Duties of Resolution Professional

25. Duties of resolution professional.

(1) It shall be the duty of the resolution professional to preserve and protect the assets of the corporate debtor, including the continued business operations of the corporate debtor.

(2) For the purposes of sub-section (1), the resolution professional shall undertake the following actions, namely:-

(a) take immediate custody and control of all the assets of the corporate debtor, including the business records of the corporate debtor;

(b) represent and act on behalf of the corporate debtor with third parties, exercise rights for the benefit of the corporate debtor in judicial, quasi-judicial or arbitration proceedings;

(c) raise interim finances subject to the approval of the committee of creditors under section 28;

(d) appoint accountants, legal or other professionals in the manner as specified by the Board;

(e) maintain an updated list of claims;

(f) convene and attend all meetings of the committee of creditors;

(g) prepare the information memorandum in accordance with section 29;

(h) invite prospective resolution applicants, who fulfil such criteria as may be laid down by him with the approval of committee of creditors, having regard to the complexity and scale of operations of the business of the corporate debtor and such other conditions as may be specified by the Board, to submit a resolution plan or plans;

(i) present all resolution plans at the meetings of the committee of creditors;

(j) file an application to the Adjudicating Authority in respect of an avoidance transaction or fraudulent or wrongful trading, if any; and

(k) such other actions as may be specified by the Board.

Meaning and Scope of Section 25

The resolution professional is the insolvency professional who conducts the CIRP after appointment under the Code. Section 25 is operational in nature: it places an affirmative duty on the resolution professional to safeguard the corporate debtor as a going concern while carrying out the statutory steps needed for the resolution process.

The central obligation under sub-section (1) is preservation and protection of the corporate debtor's assets and continued business operations. Sub-section (2) then identifies specific functions through which that obligation is discharged, including taking custody and control of assets and records, representing the corporate debtor, maintaining claims, conducting committee of creditors meetings, preparing the information memorandum and facilitating the resolution-plan process.

Key Duties of the Resolution Professional

Custody and control: The resolution professional must take immediate custody and control of the assets and business records of the corporate debtor, subject to the scheme and exceptions contained in the IBC.
Representation: The resolution professional may represent the corporate debtor before third parties and exercise its rights in judicial, quasi-judicial and arbitration proceedings for the benefit of the corporate debtor.
Interim finance: Interim finance may be raised, but where section 28 applies, prior approval of the committee of creditors is required in accordance with that provision.
Professional assistance: Accountants, legal professionals and other professionals may be appointed in the manner specified by the Insolvency and Bankruptcy Board of India (IBBI).
Claims and CoC meetings: The resolution professional must maintain an updated list of claims and convene and attend meetings of the committee of creditors.
Information memorandum: The information memorandum must be prepared in accordance with section 29 and the applicable CIRP Regulations.
Resolution applicants and plans: Prospective resolution applicants meeting criteria approved by the committee of creditors are invited under section 25(2)(h), subject to the Code and applicable regulations. Resolution plans are then dealt with in accordance with the IBC, including section 30 and the CIRP Regulations.
Avoidance and wrongful trading proceedings: Following the 2026 amendment, clause (j) expressly requires the resolution professional to file an application before the Adjudicating Authority in respect of an avoidance transaction or fraudulent or wrongful trading, where applicable.

Section 25(2)(h): Invitation to Prospective Resolution Applicants

Clause (h) requires the resolution professional to invite prospective resolution applicants who satisfy the eligibility criteria laid down by the resolution professional with the approval of the committee of creditors. The criteria must have regard to the complexity and scale of the corporate debtor's business and any other conditions specified by the Board.

The invitation and resolution-plan process must also be read with the applicable provisions of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, including the regulatory framework governing invitation of expressions of interest and requests for resolution plans.

Section 25(2)(j) after the 2026 Amendment

Before the 2026 amendment, clause (j) referred to filing an application for avoidance of transactions in accordance with Chapter III. Section 15 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 substituted the clause. With effect from 26 May 2026, the provision requires the resolution professional to file an application to the Adjudicating Authority in respect of an avoidance transaction or fraudulent or wrongful trading, if any.

This wording should be read with the relevant avoidance transaction and fraudulent or wrongful trading provisions of the Code and with section 26, as substituted in 2026. The amended section 26 clarifies the relationship between such proceedings and the insolvency or liquidation process.

Related Provisions of the IBC

Official Legal Resources

For the authoritative and updated legal framework, refer to the IBBI Acts page for the Insolvency and Bankruptcy Code and amendments, and the IBBI updated legal framework for current regulations, circulars and related instruments.

Last updated: 30 September 2026. This article is intended for general legal information. Statutory provisions, commencement notifications, regulations and case-specific requirements should be checked before acting on the information.