Full formLaw & Legal
IRPstands forInsolvency Resolution Professional
Full Form of IRP
What is IRP?
An Insolvency Resolution Professional (IRP) is a licensed individual appointed by the National Company Law Tribunal (NCLT) to oversee the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC), 2016 in India. The IRP takes control of the debtor company's management, assets, and operations upon admission of the insolvency petition. Their primary role is to compile a list of creditors, verify claims, manage the company's affairs as a going concern, and facilitate the formation of a Committee of Creditors (CoC). The IRP also invites resolution plans and conducts the process until a Resolution Professional (RP) is appointed by the CoC. This framework ensures a time-bound, creditor-driven resolution mechanism, typically within 180 days (extendable by 90 days). The IBC has significantly improved debt recovery and revived stressed assets in India. The term IRP is widely used in legal, banking, and corporate finance circles, especially during insolvency proceedings. For students preparing for CA, CS, or law exams (e.g., CA Final, CS Professional, LLB), understanding the role of an IRP is crucial as it frequently appears in questions on corporate insolvency and the IBC framework.
IRP का फुल फॉर्म
दिवाला समाधान पेशेवर
Example
The NCLT appointed an IRP to take over the management of the defaulting company and initiate the corporate insolvency resolution process under the IBC.
IRP — frequently asked questions
What is the full form of IRP?
The full form of IRP is Insolvency Resolution Professional. It refers to a licensed professional appointed under the Insolvency and Bankruptcy Code to manage a company during the corporate insolvency resolution process.
What is the role of an IRP in corporate insolvency?
An IRP takes control of the company's management and assets, verifies creditor claims, convenes the Committee of Creditors, and oversees the resolution process until a permanent Resolution Professional is appointed by the committee.
Who appoints an IRP in India?
The National Company Law Tribunal (NCLT) appoints an Insolvency Resolution Professional from a panel maintained by the Insolvency and Bankruptcy Board of India (IBBI) when admitting an insolvency petition under the IBC.