Section 108 in The Insolvency and Bankruptcy Code, 2016

Title: Conduct of meeting of creditors.

Description: (1) The meeting of the creditors shall be conducted in accordance with the provisions of this section and sections 109,110 and 111. (2) In the meeting of the creditors, the creditors may decide to approve, modify or reject the repayment plan. (3) The resolution professional shall ensure that if modifications are suggested by the creditors, consent of the debtor shall be obtained for each modification. (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.

Title: Voting rights in meeting of creditors.

Description: (1) 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. (2) The resolution professional shall determine the voting share to be assigned to each creditor in the manner specified by the Board. (3) A creditor shall not be entitled to vote in respect of a debt for an unliquidated amount. (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.

Title: Rights of secured creditors in relation to repayment plan.

Description: (1) Secured creditors shall be entitled to participate and vote in the meetings of the creditors. (2) 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. (3) 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. (4) 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. (5) 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. Explanation.—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

Title: Approval of repayment plan by creditors.

Description: 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.

Title: Report of meeting of creditors on repayment plan.

Description: (1) The resolution professional shall prepare a report of the meeting of the creditors on repayment plan. (2) The report under sub-section (1) shall contain— (a) whether the repayment plan was approved or rejected and if approved, the list the modifications, if any; (b) the resolutions which were proposed at the meeting and the decision on such resolutions; (c) list of the creditors who were present or represented at the meeting, and the voting records of each creditor for all meetings of the creditors; and (d) such other information as the resolution professional thinks appropriate to make known to the Adjudicating Authority.

PART 3 INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS CHAPTER 3 INSOLVENCY RESOLUTION PROCESS