IBC Section 113: Notice of decisions taken at meeting of creditors

Section 113 of Insolvency and Bankruptcy Code, 2016: Notice of decisions taken at meeting of creditors

Official Bare Act Text

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

The resolution professional shall provide a copy of the report of the meeting of creditors prepared under section 99 to

(a) the debtor;

(b) the creditors, including those who were not present at the meeting; and

(c) the Adjudicating Authority.

Legal Commentary & Landmark Judgments: Section 113

Section 113 provides for the statutory issuance of notice by the Adjudicating Authority to all creditors and the debtor regarding the receipt of the report on the repayment plan.

Notice of Report Receipt: The Adjudicating Authority shall provide a copy of the report under Section 112 to the debtor and creditors.
Hearing on Repayment Plan: Fixes the date of hearing for passing final orders on the repayment plan under Section 114.
Opportunity for Objections: Enables dissenting creditors to raise legal objections regarding procedural non-compliance or fraud before the final order is pronounced.

Key Landmark Precedents:

Dilip B. Jiwrajka v. Union of India (2024) 5 SCC 436: The Supreme Court affirmed that Section 113 guarantees procedural fairness by notifying all affected parties before the court pronounces binding approval or rejection under Section 114.
Swiss Ribbons Pvt. Ltd. v. Union of India (2019) 4 SCC 17: Noted that judicial notice provisions maintain integrity throughout the insolvency lifecycle.

Courtroom Practice & Strategic Litigation Guidance:

Dissenting creditors who opposed the repayment plan at the meeting should appear on the Section 113 notice date before the DRT/NCLT to file formal objections if the plan violates statutory rules (e.g., miscalculating voting share under Section 111).