IBC Section 107: Summoning of meeting of creditors

Section 107 of Insolvency and Bankruptcy Code, 2016: Summoning of meeting of creditors

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) The resolution professional shall issue a notice calling the meeting of the creditors at least fourteen days before the date fixed for such meeting.

(2) The resolution professional shall send the notice of the meeting to the list of creditors prepared under section 104.

(3) The notice sent under sub-section (1) shall state the address of the Adjudicating Authority to which the repayment plan and report of the resolution professional on the repayment plan has been submitted and shall be accompanied by-

(a) a copy of the repayment plan;

(b) a copy of the statement of affairs of the debtor;

(c) a copy of the said report of the resolution professional; and

(d) forms for proxy voting.

(4) The proxy voting, including electronic proxy voting shall take place in such manner and form as may be specified.

Legal Commentary & Landmark Judgments: Section 107

Section 107 prescribes the statutory rules for summoning the meeting of creditors to consider and vote upon the repayment plan, mandating at least fourteen days' notice.

Mandatory 14-Day Notice: The resolution professional shall issue a notice calling the meeting of creditors at least fourteen days before the date fixed for the meeting.
Service of Documentation: Notice must be accompanied by: (a) A copy of the repayment plan; (b) A copy of the statement of affairs; (c) A copy of the RP's report; (d) Voting forms and proxy nomination instructions.
Notice to Debtor: Notice of the meeting shall also be given to the debtor, who is entitled to attend and answer queries.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The Supreme Court held that the 14-day notice requirement under Section 107 guarantees that all creditors have adequate time to evaluate the commercial terms of the repayment plan before voting.
Lalit Kumar Jain v. Union of India (2021) 9 SCC 321: Affirmed that Section 107 establishes the formal meeting infrastructure for creditor democracy in individual insolvency.

Courtroom Practice & Strategic Litigation Guidance:

Ensure that the Section 107 notice specifies both in-person and electronic voting facilities (e-voting portal) in compliance with IBBI regulations, enabling institutional bank creditors to cast votes through internal committee mandates.