(1) Where any insolvency resolution, fresh start, liquidation or bankruptcy process has been initiated, it shall be the function of an insolvency professionalInsolvency Professionals(IPs) to file necessary forms with MCA upon initiation of insolvency proceeding of a company under IBC, 2016 vide General Circular 04/2020 dated 17.02.2020. To view the circular,Click Here. Further the said circular got superseded by General Circular 08/2020 dated 06.03.2020 Click Here to take such actions as may be necessary, in the following matters, namely:—
(a) a fresh start order process under Chapter II of Part III;
(b) individual insolvency resolution process under Chapter III of Part III;
(c) corporate insolvency resolution process under Chapter II of Part II;
(ca)1. Inserted vide Insolvency and Bankruptcy Code (Amendment) Act, 2021 notification dated 11.08.2021, effective from 04.04.2021. The Ordinance dated 04.04.2021 stands repealed. To view the notification, Click Here
2. Inserted vide The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 dated 04.04.2021. To view the notification, Click Here pre-packaged insolvency resolution process under Chapter III-A of Part II;
(cb)1. Inserted vide Insolvency and Bankruptcy Code (Amendment) Act, 2026 notification dated 06.04.2026, effective from 26.05.2026. To view the notification, Click Here creditor-initiated insolvency resolution process under Chapter IVA of Part II;
(d) individual bankruptcy process under Chapter IV of Part III; and
(e) liquidation of a corporate debtor firm under Chapter III of Part II.
(1A)1. Inserted vide Insolvency and Bankruptcy Code (Amendment) Act, 2021 notification dated 11.08.2021, effective from 04.04.2021. The Ordinance dated 04.04.2021 stands repealed. To view the notification, Click Here
2. Inserted vide The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021 dated 04.04.2021. To view the notification, Click Here Where the name of the insolvency professional proposed to be appointed as a resolution professional, is approved under clause (e) of sub-section (2) of section 54A, it shall be the function of such insolvency professional to take such actions as may be necessary to perform his functions and duties prior to the initiation of the pre-packaged insolvency resolution process under Chapter III-A of Part II.
(2) Every insolvency professional shall abide by the following code of conduct:—
(a)Refer Circular on Fee and other Expenses incurred for Corporate Insolvency Resolution Process dated 12.06.2018. To view the circular,Click Here to take reasonable care and diligence while performing his duties;
(b) to comply with all requirements and terms and conditions specified in the bye-laws of the insolvency professional agency of which he is a member;
(c) to allow the insolvency professional agency to inspect his records;
(d) to submit a copy of the recordsRefer Circular on Filing of Forms for the purpose of monitoring corporate insolvency resolution processes and performance of insolvency professionals dated 14.08.2019. To view the circular,Click Here of every proceeding before the Adjudicating Authority to the Board as well as to the insolvency professional agency of which he is a member; and
(e) to perform his functionsThe Insolvency Professional and other professionals appointed by Insolvency Professional shall charge fees for the duties performed in transparent manner as specified, vide circular No. IP/004/2018 dated 16.01.2018. To view the Circular, Click Here in such manner and subject to such conditions as may be specified. It is provided that the Insolvency professional shall: 1. Use Registration Number and Registered Address in all his communications. 2. Ensure compliance with provisions of the applicable laws and 3. Not outsource his responsibilities , vide circular No. IP/001/2018, No. IP/002/2018 and No. IP/003/2018 respectively dated 03.01.2018.
The Insolvency Professional and other professionals appointed by Insolvency Professional shall disclose their relationship to the Insolvency Professional Agency vide circular No. IP/005/2018 dated 16.01.2018. To view the Circular, Click Here