Section 106 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 106 gives the resolution professional a firm timetable. Within twenty-one days from the last date for claims, he must submit the repayment plan under section 105 to the Adjudicating Authority with a report on it, and the report must say whether a creditors' meeting is needed and, if so, when. This article explains the section as printed in the IBBI consolidated text of the Code amended up to 12 August 2021, and then the changes that the Insolvency and Bankruptcy Code (Amendment) Act, 2026 makes. If you are working to this timetable, a legal consultation can help you keep to it.
The resolution professional submits the repayment plan with his report within twenty-one days from the last date of submission of claims under section 102. The report states whether the plan complies with law, has a reasonable prospect of being approved and implemented, and whether a creditors' meeting is needed (with reasons if he says it is not). The meeting date must fall not less than fourteen and not more than twenty-eight days after the report is submitted. The 2026 Act adds a clause on a plan not submitted in time and a clause making the meeting compulsory for a personal guarantor to a corporate debtor.
Section 106(1): the twenty-one days
"The resolution professional shall submit the repayment plan under section 105 along with his report on such plan to the Adjudicating Authority within a period of twenty-one days from the last date of submission of claims under section 102."
The clock starts on the "last date of submission of claims", which the public notice under section 102 fixes; see our article on sections 102 to 104. Both the plan and the report go to the Adjudicating Authority together. The plan itself is explained in our article on the repayment plan under section 105.
Section 106(2): what the report must say
The report "shall include that":
| Clause | Content of the report |
|---|---|
| (a) | The repayment plan is in compliance with the provisions of any law for the time being in force |
| (b) | The repayment plan has a reasonable prospect of being approved and implemented |
| (c) | There is a necessity of summoning a meeting of the creditors, if required, to consider the repayment plan |
Proviso. "Where the resolution professional recommends that a meeting of the creditors is not required to be summoned, reasons for the same shall be provided." So, as printed, the report may recommend no meeting, but it must then give reasons. If the Adjudicating Authority later decides on the plan without a meeting, section 114(1) says it acts on this report; see our article on sections 114 and 115. That makes the reasoning in the report important.
Section 106(3) and (4): date, time and place of the meeting
Sub-section (3): the report "shall also specify the date on which, and the time and place at which, the meeting should be held if he is of the opinion that a meeting of the creditors should be summoned."
Sub-section (4): for the purposes of sub-section (3):
- (a) "the date on which the meeting is to be held shall be not less than fourteen days and not more than twenty-eight days from the date of submission of report under sub-section (1)"; and
- (b) "the resolution professional shall consider the convenience of creditors in fixing the date and venue of the meeting of the creditors."
The notice of the meeting must itself reach creditors at least fourteen days before the meeting under section 107(1); see our article on sections 107 to 109.
Example. In the insolvency process of Tara Fernandes the public notice fixes a last date for claims. The resolution professional has until twenty-one days after that date to submit the plan and report. He submits on day nineteen and recommends a meeting. The meeting date he proposes must fall between fourteen and twenty-eight days after the day of submission. If he had recommended no meeting, the report would have to state his reasons.
What the Amendment Act, 2026 changes
Section 53 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) makes three changes to section 106. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether this change has been notified.
| As printed in the consolidated text | After the 2026 Act |
|---|---|
| No provision on a repayment plan that is not submitted within the period in sub-section (1) | New sub-section (1A): "Where no repayment plan is submitted within the period stipulated under sub-section (1), the resolution professional shall submit a report to the Adjudicating Authority, and the Adjudicating Authority shall pass an order terminating the insolvency resolution process of the debtor and the debtor or the creditors shall be entitled to file an application for bankruptcy under Chapter IV." |
| Sub-section (2)(c) and sub-section (3): the report states whether a meeting is necessary "if required", and its date, time and place if the professional thinks one should be summoned | New sub-section (3A): "Notwithstanding anything to the contrary contained in the provisions of sub-section (2) and sub-section (3), where the repayment plan is in respect of the debtor who is a personal guarantor to a corporate debtor, the resolution professional shall summon the meeting of the creditors by issuing a notice in writing specifying therein the date, time and place of such meeting." |
| Sub-section (4): "For the purposes of sub-section (3)" | Sub-section (4): after those words, the words "and sub-section (3A)" are inserted |
Reading the three changes.
- Sub-section (1A) deals with the failure case. It says the professional "shall submit a report" and the Authority "shall pass an order terminating the insolvency resolution process". It then gives the debtor or the creditors a right to apply for bankruptcy under Chapter IV. The text prints no period for that report. The link to bankruptcy is carried through by the amendment to section 121(1), which adds a new clause (d) for an order under section 106(1A); see our article on sections 121 and 122.
- Sub-section (3A) overrides the discretion in sub-sections (2) and (3) for one class of debtor: a personal guarantor to a corporate debtor. For that class the professional "shall summon" the meeting by written notice stating the date, time and place. The no-meeting recommendation allowed by the proviso to sub-section (2) is therefore not available for that class.
- Sub-section (4) is extended so that the fourteen-to-twenty-eight-day window and the duty to consider creditors' convenience apply to a meeting summoned under sub-section (3A) as well. The clause (a) of sub-section (4) is worded by reference to "the date of submission of report under sub-section (1)"; sub-section (3A) itself is silent on the date, and the extended sub-section (4) fills that gap by its words.
Each amending clause can be read together with the section as printed; none conflicts with it. The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 is the regulation set for personal guarantors; the copy consulted is amended up to 02-06-2026. For other individuals and partnership firms, no rules or regulations are in the texts consulted.
Section 106 in the sequence
Section 106 sits between the list of creditors (section 104) and the meeting (section 107). Its report is what the Adjudicating Authority relies on if no meeting is held (section 114(1) proviso). Our article on the discharge order under section 119 covers the end of the plan. Section 106 does not say what the Authority does with the report on receipt, and it does not provide for the debtor to respond to it.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help meeting the section 106 timetable?
The twenty-one days run from the last date for claims, and under the 2026 text a plan that is not submitted in time leads to termination of the process. A legal consultation can help you check the dates, the contents of the report and whether the new sub-section (3A) applies to your debtor.
Key takeaways
- The plan and the report are due within twenty-one days from the last date of submission of claims under section 102.
- The report states legal compliance, prospects of approval and implementation, and whether a meeting is needed, with reasons if not.
- The meeting date falls between fourteen and twenty-eight days after submission of the report.
- Under the 2026 Act, a plan not submitted in time ends the process, with a right to apply for bankruptcy.
- Under the 2026 Act, a personal guarantor's plan must always go to a creditors' meeting.
Read next
- Sections 107 to 109: the meeting of creditors
- Sections 111 to 113: approval of the repayment plan
- Sections 102 to 104: public notice, claims and the list of creditors
- The repayment plan under section 105
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.