IBBI issues Guidelines for Insolvency Professionals to Act as Interim Resolution Professionals, Liquidators and Bankruptcy Trustees [Read Guidelines]

The Insolvency and Bankruptcy Board of India (IBBI) has renewed its efforts to lay down clear and concise procedures to be followed in by professionals by issuing the Insolvency Professionals to act as Interim Resolution Professionals, Liquidators, Resolution Professionals and Bankruptcy Trustees (Recommendation) Guidelines, 2025.

The guidelines were notified on May 27, 2025 and slated to come into effect from July 1, 2025, and remain applicable till December 31, 2025.

The guidelines provide a structured mechanism for preparing and recommending a panel of Insolvency Professionals (IP) for appointments by the National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) under various provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).

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At its core, the document consolidates the eligibility criteria, selection process, zonal categorization, and procedural commitments required for IPs to be included in a panel for appointment as Interim Resolution Professionals (IRP), Resolution Professionals (RP), Liquidators, and Bankruptcy Trustees (BT).

Ultimately, the guidelines seek to effectuate the appointment of vetted professionals to take over the concerned roles of IRPs, RPs and BTs.

For inclusion, IPs must be free from ongoing disciplinary proceedings, hold a valid Authorization for Assignment (AFA) covering the entire panel term, and must not have been convicted within the last three years.

Expression of Interest must be submitted in the prescribed Form A, which also constitutes consent to be appointed in any process involving a corporate or individual debtor.

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IPs are required to specify their sectoral experience and affirm their willingness to act without conditions. Once selected, their inclusion in the panel serves as deemed consent to accept appointments unless exempted by the Board or Tribunal. Refusal to act without sufficient justification could result in removal from the panel for six months.

Furthermore, IPs are expected not to surrender their registration, membership, or AFA during the panel’s validity period.

An important aspect of the guidelines is the classification of Insolvency Professionals according to zones and NCLT benches, based on the location of their registered offices. This zonal allocation, as outlined in Annexure-1 of the document, organizes the NCLT benches into four regions i.e., North, South, East, and West to facilitate efficient assignment and balanced regional distribution.

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However, it may be noted that Insolvency Professional Entities (IPEs) are not subject to this zonal limitation and can be appointed before any NCLT bench irrespective of location.

The guidelines also include Form A for submitting expressions of interest, requiring detailed disclosures on current and past assignments, sectoral expertise, and self-declarations regarding disciplinary history and eligibility.

To Read the full text of the Order CLICK HERE

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