Section 104 Preparation of List of Creditors under the Insolvency and Bankruptcy Code, 2016

Section 104 of the Insolvency and Bankruptcy Code, 2016 requires the resolution professional to prepare the list of creditors during the insolvency resolution process for individuals and partnership firms. The list is based on information disclosed in the relevant insolvency application and claims received in the claims process, and must be prepared within the statutory thirty-day period.

Text of Section 104 - Preparation of list of creditors

Meaning and requirements of Section 104

Duty of the resolution professional

The statutory responsibility for preparing the list rests on the resolution professional. The list is an important procedural record because later stages of the insolvency resolution process, including a meeting of creditors where required, depend on the identified creditor body.

Information disclosed in the insolvency application

Section 104(1)(a) requires the resolution professional to use information disclosed in the application filed under Section 94 or Section 95, as the case may be. Section 94 deals with an application by a debtor to initiate the insolvency resolution process, while Section 95 deals with an application by a creditor.

Claims received in the claims process

Section 104(1)(b) also requires the list to be based on claims received by the resolution professional under the statutory claims process following the public notice under Section 102. Section 103 separately sets out the manner in which creditors register their claims with the resolution professional.

Thirty-day statutory deadline

Section 104(2) requires the resolution professional to prepare the list within thirty days from the date of the notice. The deadline is therefore linked to the notice in the claims process and should be read together with Section 102.

List of creditors for personal guarantors to corporate debtors

Where the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 apply, the regulations supplement Section 104. Regulation 9 provides for the list of creditors to contain prescribed details, including the names of creditors, amounts claimed, amounts admitted and security interest, if any, in respect of the claims. The applicable regulations should be checked in their current form for procedural requirements concerning inspection, service, presentation and filing of the list.

Why the list of creditors matters

The list prepared under Section 104 is used at later stages of the insolvency resolution process. In particular, Section 107 provides that notice of a meeting of creditors is to be sent to the list of creditors prepared under Section 104. Section 109 governs voting rights at meetings of creditors and requires voting shares to be determined in accordance with the statutory framework and applicable regulations.

Key points at a glance

• The resolution professional is responsible for preparing the list of creditors.
• The list is based on information disclosed in the relevant application under Section 94 or 95 and claims received through the statutory claims process.
• The list must be prepared within thirty days from the date of the notice.
• Section 104 should be read with Sections 102 and 103 governing public notice and registration of creditor claims.
• For personal guarantors to corporate debtors, the applicable IBBI regulations supplement the Code with requirements concerning the contents and use of the list.
• The list is relevant to later creditor-meeting and voting procedures under Sections 107 and 109.

Related provisions

Section 104 should be read with Section 94 on an application by a debtor, Section 95 on an application by a creditor, Section 102 on public notice and claims from creditors, Section 103 on registration of claims, Section 105 on the repayment plan, Section 107 on summoning a meeting of creditors, and Section 109 on voting rights in a meeting of creditors.

This page provides statutory reference material and general legal information. The current Code, applicable rules, regulations, notifications and binding judicial decisions should be checked for a particular proceeding.