Section 110 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.
A repayment plan for an individual or a firm puts a hard choice to a secured creditor. Section 110 says that he may take part in the meeting and vote, but a creditor who votes gives up the right to enforce his security during the plan; a creditor who wants to keep that right may vote only on the unsecured part of his debt. This article reads the section as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. A lender weighing this choice can discuss it with our recovery suit team before the meeting.
Secured creditors may participate and vote at the meetings of the creditors. A secured creditor who votes forfeits his right to enforce the security during the period of the repayment plan, in accordance with its terms. A secured creditor who does not forfeit that right must give the resolution professional an affidavit at the meeting that his vote relates only to the unsecured part of the debt, with the estimated value of that part. If he does not vote but the plan affects his right to enforce, his concurrence is needed.
Why the section exists
A secured creditor ordinarily has a claim against the debtor and a claim on particular property. A repayment plan binds the debtor and the creditors mentioned in it (section 115). If secured creditors could vote on the plan and still enforce their security as they pleased, the plan could be defeated by the very creditors who helped approve it. Section 110 sets the terms on which a secured creditor takes part.
Section 110(1): the right to participate and vote
"Secured creditors shall be entitled to participate and vote in the meetings of the creditors." The voting entitlement works through section 109, which assigns voting share and bars unliquidated debts and associates of the debtor; see our article on sections 107 to 109.
Section 110(2): voting costs the right to enforce
"A secured creditor participating in the meetings of the creditors and voting in relation to the repayment plan shall forfeit his right to enforce the security during the period of the repayment plan in accordance with the terms of the repayment plan."
Points to note:
- The forfeiture is triggered by participating and voting, not by the plan being approved.
- It lasts for "the period of the repayment plan", which the Explanation defines (see below).
- It operates "in accordance with the terms of the repayment plan". The plan's terms therefore shape how the right is held back.
- The section speaks only of the period of the plan. It says nothing more about the position of the security once that period has ended.
Section 110(3) and (4): keeping the security
"Where a secured creditor does not forfeit his right to enforce security, he shall submit an affidavit to the resolution professional at the meeting of the creditors stating":
- (a) "that the right to vote exercised by the secured creditor is only in respect of the unsecured part of the debt"; and
- (b) "the estimated value of the unsecured part of the debt."
Sub-section (4) adds: "In case a secured creditor participates in the voting on the repayment plan by submitting an affidavit under sub-section (3), the secured and unsecured parts of the debt shall be treated as separate debts."
So a secured creditor has two choices when he votes:
| Choice | What he does | Effect |
|---|---|---|
| Vote with forfeiture | Participates and votes on the plan without an affidavit | Forfeits the right to enforce the security during the period of the repayment plan, in accordance with its terms |
| Vote on the unsecured part only | Submits the affidavit under sub-section (3) at the meeting | Votes only in respect of the unsecured part; secured and unsecured parts are treated as separate debts |
The affidavit must be given "at the meeting of the creditors", so it cannot be left until later. The value of the unsecured part is "estimated", which the section leaves to the creditor's own estimate. It does not say how the estimate is tested, and this article adds no test.
Example. Pioneer Finance Limited holds a charge over a flat of the debtor, Hari Narayan, for a loan of a stated sum. The flat is worth less than the loan. Pioneer attends the meeting. If it votes without an affidavit, it forfeits the right to enforce the charge during the period of the plan. If it prefers to keep the charge, it hands the resolution professional an affidavit stating that it votes only for the unsecured part (the shortfall, on its estimate) and giving the estimated value of that part. Its debt is then treated as two debts: the secured part, which it may enforce, and the unsecured part, on which it votes.
Section 110(5): the creditor who does not vote
"The concurrence of the secured creditor shall be obtained if he does not participate in the voting on repayment plan but provision of the repayment plan affects his right to enforce security."
This closes the gap for a secured creditor who stays away or abstains. If the plan touches his right to enforce, his concurrence is a condition. The section does not state how concurrence is recorded or what happens if it is refused, and this article adds nothing on those points.
The Explanation: "period of the repayment plan"
"For the purposes of this section, 'period of the repayment plan' means the period from the date of the order passed under section 114 till the date on which the notice is given by the resolution professional under section 117 or report submitted by the resolution professional under section 118, as the case may be."
The period therefore starts with the Adjudicating Authority's order on the plan and ends in one of two ways:
- on the notice under section 117 that the plan has been fully implemented; or
- on the report under section 118 that the plan has come to an end prematurely.
See our articles on sections 114 and 115, sections 116 and 117 and sections 118 and 120.
How this compares with a bankruptcy application
Section 123(2) asks a secured creditor who applies for bankruptcy to give a statement that he will give up his security for the benefit of all creditors, or a statement that the application relates only to the unsecured part of the debt with an estimate of its value; sub-section (3) treats the two parts as separate debts. See our article on section 123. The design is similar, though the consequence and the stage are different.
The Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 is the regulation set for this process 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.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend section 110 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 the neighbouring sections 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 deciding how to vote as a secured creditor?
The choice under section 110 turns on the value of the security, the terms of the plan and the timing of the affidavit. Our recovery suit team can review the plan, the charge documents and the value of the unsecured part with you before the meeting.
Key takeaways
- Secured creditors may participate and vote at meetings of the creditors.
- Voting without an affidavit forfeits the right to enforce the security during the period of the repayment plan.
- A creditor who keeps his security must submit an affidavit at the meeting limiting his vote to the unsecured part.
- The secured and unsecured parts are then treated as separate debts.
- If a secured creditor does not vote but the plan affects his security, his concurrence is needed.
Read next
- Sections 107 to 109: the meeting of creditors and voting rights
- Sections 111 to 113: approval of the repayment plan
- Section 123: application for bankruptcy by a creditor
- 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.