Sections 111 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.
After the creditors' meeting on a repayment plan, three short sections complete the creditors' stage. Section 111 fixes the majority needed to approve the plan or any modification. Section 112 requires the resolution professional to report on the meeting. Section 113 sends that report to the debtor, the creditors and the Adjudicating Authority. This article reads them as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. Anyone who needs to count votes or challenge a result can begin with a legal consultation.
A repayment plan, or a modification to it, is approved by a majority of more than three-fourth in value of the creditors present in person or by proxy and voting on the resolution. The resolution professional then prepares a report of the meeting that records approval or rejection, the resolutions and decisions, who was present and how each creditor voted, and any other information he thinks fit. A copy goes to the debtor, to all creditors (including those absent) and to the Adjudicating Authority.
Section 111: the majority
"The repayment plan or any modification to the repayment plan shall be approved by a majority of more than three-fourth in value of the creditors present in person or by proxy and voting on the resolution in a meeting of the creditors."
Printing point: the consolidated text prints "three-fourth" rather than "three-fourths", and repeats the section heading ("Approval of repayment plan by creditors.") at the end of the sentence. Both are quoted as printed.
Four features:
- Value, not numbers. The test is "in value". A single creditor with a large voting share can matter more than several small creditors. The voting share is assigned by the resolution professional in the manner specified by the Board (section 109(2)).
- More than three-fourths. The threshold is a majority "of more than three-fourth". Exactly three-fourths in value would not be "more than" three-fourths.
- Of those present and voting. The denominator is "the creditors present in person or by proxy and voting on the resolution", not the whole list of creditors. A creditor who stays away or abstains is outside the count.
- Plan and modifications. The same majority applies to "the repayment plan or any modification to the repayment plan".
Example. Creditors present and voting at the meeting on the plan of Kiran Lal hold voting shares adding up to 200 units: Alder Bank 120, Sundar Traders 50 and Meera Supplies 30. More than three-fourths of 200 is more than 150 units. Alder Bank and Sundar Traders together hold 170 units and can carry the resolution. If Alder Bank alone votes in favour with 120 units, the majority is not reached. A creditor who is absent or not voting is not counted in the 200.
Who can vote is in section 109, and the rules on secured creditors are in section 110; see our articles on sections 107 to 109 and on section 110. Under section 108(3) the debtor's consent is needed for each modification suggested by creditors.
Section 112: report of the meeting
Duty (sub-section (1)). "The resolution professional shall prepare a report of the meeting of the creditors on repayment plan."
Contents (sub-section (2)). The report "shall contain":
| Clause | Content |
|---|---|
| (a) | Whether the repayment plan was approved or rejected and, if approved, the list of the modifications, if any |
| (b) | The resolutions proposed at the meeting and the decision on such resolutions |
| (c) | The list of the creditors present or represented at the meeting, and the voting records of each creditor for all meetings of the creditors |
| (d) | Such other information as the resolution professional thinks appropriate to make known to the Adjudicating Authority |
The report therefore records the vote creditor by creditor. Clause (c) speaks of "all meetings of the creditors", which allows for adjournments and more than one meeting. Clause (d) leaves the professional a discretion to add further information for the Adjudicating Authority.
The section prints no period for the report. This article gives none.
Section 113: notice of decisions
"The resolution professional shall provide a copy of the report of the meeting of creditors prepared under section 99 to" (a) the debtor, (b) the creditors, "including those who were not present at the meeting", and (c) the Adjudicating Authority.
Printing slip: section 113 refers to the report "prepared under section 99". The report of the meeting is prepared under section 112; section 99 deals with the resolution professional's report on the application. We flag the slip and do not correct it; the reading that makes sense is that the report of the meeting under section 112 is meant.
Two points follow from the text. First, all creditors receive the report, not only those who attended or voted, so a creditor who missed the meeting can still learn the result. Second, the copy to the Adjudicating Authority is what lets it act under section 114: the Authority approves or rejects the plan "on the basis of the report of the meeting of the creditors submitted by the resolution professional under section 112"; see our article on sections 114 and 115. If no meeting was summoned, the Authority acts on the report under section 106; see our article on section 106.
The section prints no period for providing the copy, and no consequence if it is not provided.
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 sections 111, 112 or 113 as printed in the texts consulted. It does insert sub-section (3A) in section 106, under which a creditors' meeting must be summoned for a personal guarantor to a corporate debtor; that change is explained in the section 106 article linked above. 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 it 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 counting a creditors' vote?
The value majority is counted from the creditors who are present and voting, and the resolution professional's report fixes the record. A legal consultation can help you test the count, check that the report is complete and decide what to do if the result turns on a disputed voting share.
Key takeaways
- Approval needs a majority of more than three-fourth in value of the creditors present in person or by proxy and voting.
- The same majority applies to modifications.
- The report records approval or rejection, resolutions, attendance and each creditor's voting record.
- A copy goes to the debtor, all creditors (including absentees) and the Adjudicating Authority.
- Section 113 prints "section 99" where "section 112" appears to be meant.
Read next
- Sections 114 and 115: order of the Adjudicating Authority on the repayment plan
- Sections 107 to 109: the meeting of creditors
- Section 110: secured creditors and the repayment plan
- 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.