IBC Section 117: Completion of repayment plan

Section 117 of Insolvency and Bankruptcy Code, 2016: Completion of repayment plan

Official Bare Act Text

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

(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.

Legal Commentary & Landmark Judgments: Section 117

Section 117 governs the formal completion of the repayment plan, requiring the resolution professional to verify total performance and submit a conclusive completion report to creditors and the Adjudicating Authority.

Full Performance Verification: The resolution professional must thoroughly verify that the debtor has honored all financial commitments, debt payments, and obligations stipulated in the approved plan.
Notice to Creditors and Debtor: A formal completion notice enclosing the final implementation account must be transmitted to all participating creditors and the debtor within the prescribed statutory period.
Filing of Final Report: The resolution professional must file the final report with the Adjudicating Authority along with supporting receipts, escrow disbursement records, and compliance statements.

Key Landmark Precedents:

Committee of Creditors of Essar Steel v. Satish Kumar Gupta (2020) 8 SCC 531: The Supreme Court stressed that the finality of debt resolution mechanisms rests on unequivocal completion and verification by the court-appointed professional.
State Bank of India v. V. Ramakrishnan (2018) 17 SCC 394: Held that the distinct statutory stages of individual resolution under Part III must be completed with strict evidentiary compliance before the debtor can seek legal absolution.

Courtroom Practice & Strategic Litigation Guidance:

Resolution professionals must ensure that every disbursement receipt, banking statement, and creditor acknowledgment is audited and attached to the Section 117 completion report to forestall subsequent creditor disputes during discharge proceedings under Section 119.