Act Number: 31

Act Name: The Insolvency and Bankruptcy Code, 2016.

Year: 2016

Enactment Date: 2016-05-28

Long Title: An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.

Ministry: Ministry of Corporate Affairs

Department:

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].
    
Notes:
1. Subs. by Act 1 of 2020, s. 6, for "within fourteen days from the insolvency commencement date" (w.e.f. 28-12-2019).
2. Subs. by Act 26 of 2018, s. 12, for "shall not exceed thirty days from date of his appointment" (w.e.f. 6-6-2018).
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