Section 112: Report of Meeting of Creditors on Repayment Plan
Section 112 of the Insolvency and Bankruptcy Code, 2016 requires the resolution professional to prepare a report of the meeting of creditors concerning the repayment plan. The report records the result of the creditors' consideration of the plan, the resolutions and decisions taken, creditor participation and voting records, and other information considered appropriate for the Adjudicating Authority.
Text and requirements of Section 112
Section 112(1): The resolution professional shall prepare a report of the meeting of the creditors on repayment plan.
Section 112(2): The report under sub-section (1) shall contain -
(a) whether the repayment plan was approved or rejected and, if approved, the list of modifications, if any;
(b) the resolutions which were proposed at the meeting and the decision on such resolutions;
(c) the list of creditors who were present or represented at the meeting, and the voting records of each creditor for all meetings of the creditors; and
(d) such other information as the resolution professional thinks appropriate to make known to the Adjudicating Authority.
Meaning and purpose of Section 112
The provision creates the formal record of the creditors' meeting on the repayment plan. The resolution professional is responsible for preparing this report after the meeting process contemplated by the Code. It is not limited to recording whether the plan succeeded or failed; it must also disclose the resolutions considered, the decisions taken, participation of creditors and their voting records.
The report is important because the statutory process moves from creditor consideration of the repayment plan to consideration by the Adjudicating Authority. The information recorded under Section 112 therefore provides the Authority with the meeting record relevant to the next stage under the Code.
What must the resolution professional report?
1. Approval or rejection of the repayment plan
The report must clearly state whether the creditors approved or rejected the repayment plan. Where the plan was approved with modifications, those modifications must also be listed. This requirement should be read with Section 111 on approval of a repayment plan by creditors.
2. Resolutions proposed and decisions taken
The report must identify the resolutions placed before the creditors and state the decision on each resolution. This provides a structured record of the matters considered at the meeting rather than merely recording the final status of the repayment plan.
3. Creditors present or represented and voting records
The resolution professional must list the creditors who attended or were represented at the meeting and record each creditor's voting record for all meetings of creditors. This requirement connects the report with the statutory rules governing conduct of meetings and voting rights.
4. Other appropriate information
Section 112(2)(d) permits the resolution professional to include other information considered appropriate to be made known to the Adjudicating Authority. This allows relevant information concerning the meeting and repayment-plan decision to be placed before the Authority even where it does not fall precisely within clauses (a) to (c).
Relationship with Sections 111, 113 and 114
Section 111 governs the creditor voting threshold for approval of the repayment plan or any modification to it. Section 112 then requires the resolution professional to prepare the report recording the outcome and prescribed meeting information.
Section 113 deals with notice of decisions taken at the meeting of creditors. Thereafter, Section 114 provides for the Adjudicating Authority to approve or reject the repayment plan on the basis of the report of the meeting of creditors submitted by the resolution professional under Section 112, subject to the statutory provisions applicable where a meeting of creditors is not summoned.
Related repayment plan provisions
The repayment-plan framework in this part of the Code includes preparation of the list of creditors, preparation and examination of the repayment plan, summoning and conduct of the meeting of creditors, voting, treatment of secured creditors, approval by creditors, the Section 112 meeting report, notice of decisions and the order of the Adjudicating Authority. The provisions following Section 114 address the effect, implementation, supervision, completion and possible premature termination of the repayment plan and discharge.
Official legal resources
For the latest statutory and regulatory material, readers should verify the current legal framework published by the Insolvency and Bankruptcy Board of India (IBBI) and the official text of the Insolvency and Bankruptcy Code, 2016. Amendments, regulations, circulars and notifications should be checked for their effective dates and application to the particular insolvency process.
This page is intended as a legal information resource. The application of the Insolvency and Bankruptcy Code and regulations depends on the facts, the category of debtor or guarantor, applicable notifications, amendments and orders of the competent authority.