Section 134 of The Insolvency and Bankruptcy Code, 2016.
- (1)The bankruptcy trustee shall be the convener of the meeting of the creditors summoned under section 133.
- (2)The bankruptcy trustee shall decide the quorum for the meeting of the creditors, and conduct the meeting only if the quorum is present.
- (3)The following business shall be conducted in the meeting of the creditors in which regard a resolution may be passed, namely:—
- (a)the establishment of a committee of creditors;
- (b)any other business that the bankruptcy trustee thinks fit to be transacted.
- (4)The bankruptcy trustee shall cause the minutes of the meeting of the creditors to be recorded, signed and retained as a part of the records of the bankruptcy process.
- (5)The bankruptcy trustee shall not adjourn the meeting of the creditors for any purpose for more than seven days at a time.
Summary
- The bankruptcy trustee acts as the convener, the person who calls and manages the meeting, for the creditors meeting.
- The trustee decides the quorum, the minimum number of members needed to make the meeting valid, and can only conduct it if this quorum is met.
- The meeting must establish a committee of creditors and can conduct any other business the trustee decides is appropriate.
- The trustee must write down, sign, and keep the minutes of the meeting as official records of the bankruptcy process.
- The trustee is prohibited from adjourning, or putting off, the meeting for more than seven days at any one time.
Practical examples
FAQ
1. Who is responsible for calling and running the creditors meeting under the Insolvency and Bankruptcy Code, 2016, Section 134?
Under Section 134 of the Insolvency and Bankruptcy Code, 2016, the bankruptcy trustee is the convener who summons and conducts the meeting of the creditors.
2. Can a creditors meeting be conducted without a quorum under the Indian bankruptcy law, Section 134?
No, under Section 134 of the Insolvency and Bankruptcy Code, 2016, the bankruptcy trustee must decide the quorum and is only allowed to conduct the meeting if that quorum is actually present.
3. What is the maximum period for which a bankruptcy trustee can adjourn a creditors meeting under Section 134 of the 2016 Act?
Under Section 134 of the Insolvency and Bankruptcy Code, 2016, the bankruptcy trustee cannot adjourn the meeting of the creditors for any purpose for more than seven days at a time.
4. What key businesses must be transacted in the first meeting of creditors under Section 134 of the Insolvency and Bankruptcy Code, 2016?
Under Section 134 of the Insolvency and Bankruptcy Code, 2016, the meeting must establish the committee of creditors, alongside any other business the bankruptcy trustee deems fit to transact.
Test yourself
Q1.Under Section 134 of the Insolvency and Bankruptcy Code, 2016, who is the statutory convener responsible for running the meeting of the creditors?
Q2.Under Section 134 of the Insolvency and Bankruptcy Code, 2016, what must the bankruptcy trustee do before actually conducting the meeting?
Q3.If a creditors meeting needs to be adjourned under Section 134 of the Insolvency and Bankruptcy Code, 2016, what is the maximum duration for a single adjournment?
Q4.Which of the following is a mandatory business that must be conducted during the creditors meeting under Section 134 of the Insolvency and Bankruptcy Code, 2016?