IBC Section 132: Preparation of list of creditors

Section 132 of Insolvency and Bankruptcy Code, 2016: Preparation of list of creditors

Official Bare Act Text

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

The bankruptcy trustee shall, within fourteen days from the bankruptcy commencement date, prepare a list of creditors of the bankrupt on the basis of-

(a) the information disclosed by the bankrupt in the application for bankruptcy filed by the bankrupt under section 118 and the statement of affairs filed under section 125; and

(b) claims received by the bankruptcy trustee under sub-section (2) of section 130.

Legal Commentary & Landmark Judgments: Section 132

Section 132 mandates the Bankruptcy Trustee to prepare a comprehensive List of Creditors based on registered claims within fourteen days of claim verification.

Fourteen-Day Compilation Timeline: The bankruptcy trustee must finalize and certify the list of creditors within 14 days from the completion of claim registrations under Section 131.
Contents of the List: Must specify the name of each creditor, quantum of admitted claim, classification (secured, unsecured, operational, or statutory), and voting share.
Filing and Inspection: The list of creditors must be filed with the Adjudicating Authority and made available for physical and electronic inspection by all stakeholders.

Key Landmark Precedents:

Committee of Creditors of Essar Steel v. Satish Kumar Gupta (2020) 8 SCC 531: The Supreme Court affirmed that the compilation of a legally accurate creditors' list determines the foundational voting and distribution entitlement under the Code.
ArcelorMittal India Pvt. Ltd. v. Satish Kumar Gupta (2019) 2 SCC 1: Emphasized that transparent publication of creditor lists is indispensable for fair collective governance during insolvency and bankruptcy.

Courtroom Practice & Strategic Litigation Guidance:

Bankruptcy trustees must verify that related-party creditors are identified and marked on the Section 132 list, as related parties are statutorily barred from exercising voting rights in creditors' meetings.