Sections 107 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.
When a repayment plan for an individual or a firm goes to the creditors, three sections govern the meeting. Section 107 says how it is summoned, section 108 how it is conducted and section 109 who can vote and how votes are counted. This article reads them as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. Creditors who want to protect their position before the vote can discuss their options with our recovery suit team.
The resolution professional must give at least fourteen days' notice of the meeting to the creditors on the list prepared under section 104, with the repayment plan, the debtor's statement of affairs, his report and proxy forms. At the meeting the creditors may approve, modify or reject the plan, each modification needing the debtor's consent; adjournment is not more than seven days at a time. A creditor votes according to the voting share assigned to him, but not for an unliquidated debt, not if he is off the list, and not if he is an associate of the debtor.
Section 107: summoning the meeting
Notice period (sub-section (1)). "The resolution professional shall issue a notice calling the meeting of the creditors at least fourteen days before the date fixed for such meeting." The meeting date itself is fixed with reference to section 106(4), which requires it to fall between fourteen and twenty-eight days after the report; see our article on section 106.
To whom (sub-section (2)). The notice goes "to the list of creditors prepared under section 104". A person who is not on that list is not entitled to a notice under this sub-section; see our article on sections 102 to 104.
What it states and carries (sub-section (3)). The notice "shall state the address of the Adjudicating Authority to which the repayment plan and report of the resolution professional on the repayment plan has been submitted" and be accompanied by:
| Clause | Enclosure |
|---|---|
| (a) | A copy of the repayment plan |
| (b) | A copy of the statement of affairs of the debtor |
| (c) | A copy of the said report of the resolution professional |
| (d) | Forms for proxy voting |
Proxy voting (sub-section (4)). "The proxy voting, including electronic proxy voting shall take place in such manner and form as may be specified." The manner and form are left to be specified; the Code does not say by whom, and they are not in the texts consulted. 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. No rules or regulations on other individuals or on partnership firms are in the texts consulted.
Section 108: conduct of the meeting
Governing provisions (sub-section (1)). The meeting "shall be conducted in accordance with the provisions of this section and sections 109, 110 and 111". Section 110 deals with secured creditors and section 111 with approval; see our articles on section 110 and on sections 111 to 113.
What the creditors may do (sub-section (2)). "The creditors may decide to approve, modify or reject the repayment plan." Three outcomes are open.
Modifications (sub-section (3)). "The resolution professional shall ensure that if modifications are suggested by the creditors, consent of the debtor shall be obtained for each modification." The words "each modification" mean that consent is not given in a block. A plan is, at root, the debtor's own proposal under section 105, which the debtor prepares with the professional.
Adjournment (sub-section (4)). "The resolution professional may for a sufficient cause adjourn the meeting of the creditors for a period of not more than seven days at a time." Three conditions: it is the professional's power, it needs sufficient cause, and each adjournment is capped at seven days "at a time". The text does not cap the number of adjournments.
Example. At the meeting on the repayment plan of Vikram Shetty, the creditors suggest that the first instalment be paid two months earlier. The resolution professional must obtain Vikram's consent to that modification before it can form part of the plan. If Vikram agrees to that change but not to a second suggested change, consent is required separately for each.
Section 109: voting rights
Voting share (sub-sections (1) and (2)). "A creditor shall be entitled to vote at every meeting of the creditors in respect of the repayment plan in accordance with the voting share assigned to him." The resolution professional "shall determine the voting share to be assigned to each creditor in the manner specified by the Board". The Board here is the Insolvency and Bankruptcy Board of India.
Unliquidated debts (sub-section (3)). "A creditor shall not be entitled to vote in respect of a debt for an unliquidated amount." A claim whose amount is not fixed carries no vote.
Who is excluded (sub-section (4)). A creditor "shall not be entitled to vote in a meeting of the creditors if he":
- (a) "is not a creditor mentioned in the list of creditors under section 104"; or
- (b) "is an associate of the debtor".
Section 79 defines "associate" of the debtor; see our article on excluded assets and the qualifying debt test under section 79 for the Part III definitions. The practical point is that the list under section 104 decides who may vote, so a creditor who has not claimed in time, and was not disclosed by the debtor, risks having no vote.
| Question | Answer under sections 107 to 109 |
|---|---|
| Who receives notice? | Creditors on the section 104 list |
| Minimum notice | At least fourteen days |
| Who may modify the plan? | Creditors may suggest; each modification needs the debtor's consent |
| Longest single adjournment | Seven days |
| Who has no vote? | Holders of unliquidated debts; creditors off the list; associates of the debtor |
Where voting leads
The majority needed to approve a plan is in section 111, and the report of the meeting in section 112. Neither is repeated here. The meeting stage follows the report in section 106, and for a personal guarantor to a corporate debtor the Amendment Act, 2026 inserts sub-section (3A) in section 106, which requires the professional to summon the meeting; that change is explained in the section 106 article linked above.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend sections 107, 108 or 109 as printed in the texts consulted. 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 any change to section 106, which leads to this meeting, has been notified.
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 before a creditors' meeting on a repayment plan?
A creditor who is on the list has a vote in proportion to its voting share, but only if it attends or appoints a proxy in the manner specified. Our recovery suit team can review the notice, the plan and the report with you, and help you decide how to vote or what modification to propose.
Key takeaways
- The notice must be issued at least fourteen days before the meeting and sent to the creditors on the section 104 list.
- The notice carries the plan, the statement of affairs, the report and proxy forms.
- Creditors may approve, modify or reject the plan; each modification needs the debtor's consent.
- Adjournments are limited to seven days at a time.
- No vote for unliquidated debts, creditors off the list or associates of the debtor.
Read next
- Section 110: rights of secured creditors in relation to the repayment plan
- Sections 111 to 113: approval of the repayment plan and report of the meeting
- Section 106: the resolution professional's report
- 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.