Section 134 - Conduct of Meeting of Creditors under the Insolvency and Bankruptcy Code 2016

Section 134 of the Insolvency and Bankruptcy Code, 2016 governs how the meeting of creditors summoned under Section 133 is conducted. It deals with the bankruptcy trustee's role as convener, quorum, business and resolutions, minutes and limits on adjournment.

Key rule: The bankruptcy trustee convenes the meeting, determines the quorum and may conduct the meeting only when the required quorum is present. An adjournment cannot exceed seven days at a time.

Section 134 - Statutory requirements

Section 134(1): The bankruptcy trustee shall be the convener of the meeting of creditors summoned under Section 133.

Section 134(2): The bankruptcy trustee shall decide the quorum for the meeting of creditors and conduct the meeting only if the quorum is present.

Section 134(3): Business on which a resolution may be passed includes:

(a) establishment of a committee of creditors; and

(b) any other business that the bankruptcy trustee thinks fit to be transacted.

Section 134(4): The bankruptcy trustee shall cause the minutes of the meeting to be recorded, signed and retained as part of the records of the bankruptcy process.

Section 134(5): The bankruptcy trustee shall not adjourn the meeting of creditors for any purpose for more than seven days at a time.

Bankruptcy trustee as convener

The meeting governed by Section 134 is the creditors' meeting summoned under Section 133. Section 134 places responsibility for convening and conducting that meeting on the bankruptcy trustee.

Quorum for the meeting

The bankruptcy trustee decides the quorum. The statutory restriction is clear: the meeting may be conducted only when the quorum determined by the trustee is present. This requirement ensures that the formal business of the meeting is not transacted without the required creditor participation.

Business and resolutions at the meeting

Section 134 expressly permits a resolution concerning establishment of a committee of creditors. It also allows any other business that the bankruptcy trustee considers fit to be transacted. Voting rights in relation to resolutions are dealt with separately under Section 135.

Minutes and bankruptcy records

The bankruptcy trustee must ensure that minutes of the creditors' meeting are recorded and signed. Those minutes must then be retained as part of the records of the bankruptcy process, creating a formal record of the meeting and business transacted.

Maximum period of adjournment

Section 134(5) restricts adjournment of the meeting to a maximum of seven days at a time. The provision applies to an adjournment for any purpose and is intended to prevent prolonged interruption of the creditors' meeting process.

Related provisions

Section 131 - Registration of claims Section 132 - Preparation of list of creditors Section 133 - Summoning of meeting of creditors Section 135 - Voting rights of creditors Section 136 - Administration and distribution Section 137 - Completion of administration

Official legal resources

For the current statutory text, commencement notifications and applicable subordinate legislation, refer to India Code, the Insolvency and Bankruptcy Board of India - Acts and the IBBI Updated Legal Framework.

Important: Bankruptcy provisions concerning individuals and partnership firms operate subject to the relevant commencement notifications and applicable rules and regulations for the particular category of debtor. Current official material should be checked for the proceeding concerned.

This page is intended as a legal information resource and should be read with the current official Code, notifications, rules and regulations.