Section 117: Completion of Repayment Plan
Section 117 of the Insolvency and Bankruptcy Code, 2016 sets out the resolution professional's duties when a repayment plan has been fully implemented. Within fourteen days of completion, the resolution professional must send the prescribed notice and completion report to the persons bound by the plan under Section 115 and to the Adjudicating Authority. A limited extension of up to seven days may be sought from the Adjudicating Authority.
Text of Section 117
Section 117 - Completion of repayment plan.
(1) The resolution professional shall within fourteen days of the completion of the repayment plan, forward to the persons who are bound by the repayment plan under section 115 and the Adjudicating Authority, the following documents, namely:-
(a) a notice that the repayment plan has been fully implemented; and
(b) a copy of a report by the resolution professional summarising all receipts and payments made in pursuance of the repayment plan and extent of the implementation of such plan as compared with the repayment plan approved by the meeting of the creditors.
(2) The resolution professional may apply to the Adjudicating Authority to extend the time mentioned in sub-section (1) for such further period not exceeding seven days.
Section 117 requirements at a glance
| Requirement | Section 117 position |
|---|---|
| Who acts? | The resolution professional. |
| When? | Within fourteen days of completion of the repayment plan. |
| Who receives the documents? | Persons bound by the repayment plan under Section 115 and the Adjudicating Authority. |
| What must be sent? | A notice of full implementation and a report summarising receipts, payments and the extent of implementation compared with the approved plan. |
| Can time be extended? | Yes. The resolution professional may apply for a further period not exceeding seven days. |
Meaning and purpose of Section 117
Section 117 creates a formal completion stage for an implemented repayment plan. It does not treat completion as merely a factual event between the debtor and creditors. The resolution professional must document completion and communicate it to both the persons legally bound by the plan and the Adjudicating Authority.
The completion report also provides an accounting record. It must summarise receipts and payments made under the repayment plan and compare the extent of actual implementation with the plan approved by the meeting of creditors.
Fourteen-day time limit
The statutory period under Section 117(1) is fourteen days from completion of the repayment plan. Within that period, the resolution professional must forward both the notice of full implementation and the completion report to the required recipients.
Section 117(2) permits the resolution professional to apply to the Adjudicating Authority for additional time. The further period cannot exceed seven days. The provision therefore creates a defined extension mechanism rather than an unrestricted extension of the reporting deadline.
Who is bound by the repayment plan?
The recipients under Section 117 include the persons bound by the repayment plan under Section 115. Section 115 provides that where the Adjudicating Authority has approved the repayment plan under Section 114, the plan takes effect as provided by the Code and is binding on the creditors mentioned in the repayment plan and the debtor.
Relationship with Section 116
Before completion, Section 116 requires the resolution professional appointed under Section 97 or Section 98 to supervise implementation of the repayment plan. It also permits the resolution professional to seek directions from the Adjudicating Authority where necessary concerning a particular matter arising under the plan.
Section 117 follows that supervision stage. Once the plan has been fully implemented, the resolution professional moves from supervision to formal completion reporting.
Difference between completion and premature end
Section 117 applies when the repayment plan has been fully implemented. By contrast, Section 118 applies where the repayment plan has not been fully implemented in respect of all persons bound by it within the period stated in the plan. Section 118 treats such a plan as having come to an end prematurely and requires a different report to the Adjudicating Authority.
Connection with discharge under Section 119
Section 119 deals with the discharge order. On the basis of the repayment plan, the resolution professional applies to the Adjudicating Authority for a discharge order in relation to debts mentioned in the plan. The repayment plan may provide for early discharge or discharge on complete implementation of the repayment plan.
Current legal context
Section 117 forms part of Part III of the Insolvency and Bankruptcy Code. The practical application of the individual insolvency provisions must be read with the relevant commencement notifications and the rules and regulations applicable to the particular category of debtor or personal guarantor. The statutory text of Section 117 continues to prescribe the fourteen-day completion reporting period and a possible extension not exceeding seven days.
Official legal resources
For the current statutory text and the applicable insolvency rules, regulations and notifications, refer to the IBBI Legal Framework, the Insolvency and Bankruptcy Board of India and the India Code portal.
This page is intended as a legal information resource. The applicable legal position should be checked against current commencement notifications, rules, regulations and judicial orders relevant to the particular proceeding.