Indian insolvency law | Part III, Chapter III

Section 113 of IBC, 2016: Notice of Decisions Taken at Meeting of Creditors

Section 113 of the Insolvency and Bankruptcy Code, 2016 requires the resolution professional to communicate the creditors' meeting report to the debtor, all creditors (including absentees), and the Adjudicating Authority. This ensures that decisions on the repayment plan are formally shared with those affected.

Key rule: The resolution professional must provide a copy of the creditors' meeting report to three recipient groups: the debtor, the creditors whether or not they attended, and the Adjudicating Authority. Section 113 itself does not specify a fixed number of days for circulation.

Section 113: Statutory provision and recipients

Section 113, titled "Notice of decisions taken at meeting of creditors", states that the resolution professional shall provide a copy of the report of the meeting of creditors to:

Section 113(a) - The debtor: The individual whose repayment plan was considered must receive the report.
Section 113(b) - All creditors: The report must reach creditors, including those who were not present at the meeting. Attendance is not a condition of entitlement to the report.
Section 113(c) - The Adjudicating Authority: The report must also be furnished to the competent tribunal for the next statutory stage.

The duty is imposed on the resolution professional; it is not a duty left to the debtor or an individual creditor.

Important cross-reference in the enacted text: Section 113 refers literally to a report "prepared under section 99". That wording is retained in published versions of the Code. However, Section 99 concerns the resolution professional's report on the initial insolvency application, whereas Section 112 expressly governs the report of the meeting of creditors on the repayment plan; Section 114 also refers to the Section 112 report. This article preserves the enacted cross-reference rather than silently substituting Section 112. Readers should check the current official text and any applicable judicial interpretation before relying on this discrepancy.

Why the notice of meeting decisions matters

Creditors' meetings may approve, modify or reject a repayment plan. Section 113 is a communication safeguard: the outcome and the record of proceedings must be conveyed beyond the creditors who participated in the meeting. This is particularly important for creditors who were absent, represented by proxy, or unable to vote.

Providing the report to the Adjudicating Authority also supports the subsequent decision on the repayment plan under Section 114. Distribution of the report under Section 113 does not, by itself, make the plan binding or constitute tribunal approval.

What information should the meeting report contain?

Section 112(2) describes the contents of the creditors' meeting report. They include:

Whether the repayment plan was approved or rejected and, if approved, any modifications.
Resolutions proposed at the meeting and decisions taken on each.
The list of creditors present or represented and the voting record of each creditor for all creditors' meetings.
Other information that the resolution professional considers appropriate to disclose to the Adjudicating Authority.

The circulated report should accurately reflect the record prepared for the meeting. The Code's provisions on creditors' voting and repayment-plan approval, including Sections 109 to 111, provide the legal context for the decisions reported.

Who must receive the report?

Recipient	Requirement under Section 113	Practical significance
Debtor	Must receive a copy	Can review the decisions and any modifications affecting the proposed plan
Creditors, including absentees	Must receive a copy regardless of attendance	Ensures access to the outcome and recorded votes
Adjudicating Authority	Must receive a copy	Provides the meeting record relevant to consideration under Section 114

Practical compliance steps for the resolution professional

Prepare and verify the creditors' meeting report in accordance with Section 112 and applicable rules.
Confirm the creditor list and appropriate communication details, including for creditors who did not attend.
Provide the complete report to the debtor and each creditor, keeping evidence of dispatch and delivery as applicable.
Furnish the report to the Adjudicating Authority using the prescribed filing process and directions.
Preserve supporting voting records, proxy details and any approved modifications for subsequent proceedings.

These are practical compliance measures, not an additional statutory checklist imposed verbatim by Section 113. Applicable rules, regulations and tribunal directions may prescribe further procedural requirements.

Provision	Subject
Section 107	Notice convening the meeting of creditors
Section 108	Conduct of meeting; approval, modification or rejection of the plan
Section 109	Voting shares and exclusions
Section 110	Rights of secured creditors
Section 111	Approval by more than three-fourths in value of creditors present and voting
Section 112	Preparation and contents of the meeting report
Section 114	Order on the repayment plan

Applicability to personal guarantors

Part III of the Code concerns insolvency and bankruptcy of individuals and partnership firms. The relevant insolvency-resolution provisions were commenced with effect from 1 December 2019 in relation to personal guarantors to corporate debtors. Their commencement should not be read as a general commencement of the same process for every individual or partnership firm. For such personal guarantors, the Adjudicating Authority is generally the National Company Law Tribunal under the framework of Section 60.

Frequently asked questions

Must creditors who missed the meeting receive the report?

Yes. Section 113(b) expressly includes creditors who were not present at the meeting.

Who is responsible for sending the report?

The resolution professional is responsible for providing copies to the statutory recipients.

Does Section 113 specify a seven-day or fourteen-day deadline?

No fixed circulation period appears in the text of Section 113 itself. Any applicable procedural deadline must be checked in the governing rules, regulations and tribunal directions.

Does Section 113 approve the repayment plan?

No. It deals with communicating the meeting report. The Adjudicating Authority's order on the repayment plan is addressed by Section 114.

Why does Section 113 mention Section 99 rather than Section 112?

The published statutory wording refers to Section 99, although Section 112 is the provision specifically requiring the creditors' meeting report. The discrepancy is identified above without altering the statutory text.

Official legal sources

India Code - Insolvency and Bankruptcy Code, 2016 (see Sections 99 and 107-114).
Insolvency and Bankruptcy Board of India - Legal framework.
IBBI - Rules and IBBI - Regulations.

Read the complete overview of The Insolvency and Bankruptcy Code, 2016 for the broader insolvency framework.

Editorial note: This is a general legal explainer. Confirm the current consolidated statute, commencement notifications, procedural rules and any relevant orders for an individual matter.