CHAPTER II CORPORATE INSOLVENCY RESOLUTION PROCESSCentral

Section 24 of The Insolvency and Bankruptcy Code, 2016.

(1)The members of the committee of creditors may meet in person or by such electronic means as may be specified.
(2)All meetings of the committee of creditors shall be conducted by the resolution professional.
(3)The resolution professional shall give notice of each meeting of the committee of creditors to--
1. (a)members of 1[committee of creditors, including the authorised representatives referred to in sub-sections (6) and (6A) of section 21 and sub-section (5)];
2. (b)members of the suspended Board of Directors or the partners of the corporate persons, as the case may be;
3. (c)operational creditors or their representatives if the amount of their aggregate dues is not less than ten per cent. of the debt.
(4)The directors, partners and one representative of operational creditors, as referred to in sub-section (3), may attend the meetings of committee of creditors, but shall not have any right to vote in such meetings: Provided that the absence of any such director, partner or representative of operational creditors, as the case may be, shall not invalidate proceedings of such meeting.
(5)2[Subject to sub-sections (6), (6A) and (6B) of section 21, any creditor] who is a member of the committee of creditors may appoint an insolvency professional other than the resolution professional to represent such creditor in a meeting of the committee of creditors: Provided that the fees payable to such insolvency professional representing any individual creditor will be borne by such creditor.
(6)Each creditor shall vote in accordance with the voting share assigned to him based on the financial debts owed to such creditor.
(7)The resolution professional shall determine the voting share to be assigned to each creditor in the manner specified by the Board.
(8)The meetings of the committee of creditors shall be conducted in such manner as may be specified.

Summary

The resolution professional is responsible for conducting and presiding over all meetings of the committee of creditors, which can be held in person or electronically.
Notice of each meeting must be sent to voting financial creditors, suspended directors or partners, and operational creditors if their total dues equal at least ten percent of the company's debt.
Suspended directors, partners, and representatives of operational creditors can attend and speak, but they do not have any right to vote.
The failure of any director, partner, or operational creditor representative to attend the meeting does not invalidate the proceedings or decisions.
Individual creditors can choose to appoint their own independent insolvency professional to represent them, but they must bear the cost themselves.
Creditors vote strictly according to the specific voting share calculated and assigned to them by the resolution professional based on the financial debt owed.

Practical examples

1On 5th November 2026, Mr. Vikrant Roy, the resolution professional of Delta Engineering, sends a notice for a committee meeting to be held on 20th November 2026. He sends notices to the three lending banks, the suspended directors, and to Mr. Suresh Patel, who represents a group of raw material suppliers whose combined operational debt is twelve per cent of Delta's total debt.

2During a committee meeting of Beta Textiles on 15th December 2026, none of the suspended directors attend because of personal reasons. The meeting proceeds normally, and the lenders pass a crucial resolution. Under Section 24, the absence of the directors does not affect the validity of the meeting's decisions. A creditor, Union Bank, has sent its own independent expert to represent it, paying their fees directly.

FAQ

1. Who conducts the meetings of the committee of creditors under Section 24 of The Insolvency and Bankruptcy Code, 2016?

Under Section 24 of The Insolvency and Bankruptcy Code, 2016, all meetings of the committee of creditors must be conducted by the appointed resolution professional.

2. Can directors of the company vote in the committee of creditors meetings under Section 24 of the Insolvency and Bankruptcy Code, 2016?

No, under Section 24 of the insolvency and Bankruptcy Code, 2016, suspended directors or partners may attend the meetings but do not have any right to vote.

3. When do operational creditors get a notice to attend meetings under Section 24 of the Insolvency and Bankruptcy Code, 2016?

Under Section 24 of the Insolvency and Bankruptcy Code, 2016, operational creditors or their representatives must be given notice if their aggregate dues are not less than ten per cent of the total debt.

4. Does the absence of directors make a committee meeting invalid under Section 24 of the Insolvency and Bankruptcy Code, 2016?

No, under Section 24 of the Insolvency and Bankruptcy Code, 2016, the absence of any director, partner, or representative of operational creditors does not invalidate the proceedings of the meeting.

Test yourself

Q1.Under Section 24 of The Insolvency and Bankruptcy Code, 2016, which of the following parties is entitled to vote in a meeting of the committee of creditors?

Q2.Under Section 24 of The Insolvency and Bankruptcy Code, 2016, what is the minimum debt threshold required for operational creditors to receive a notice of the committee meetings?

Q3.Under Section 24 of The Insolvency and Bankruptcy Code, 2016, which is cross-referenced with Section 21, whose voting share must the resolution professional determine for each meeting?

Q4.Under Section 24 of The Insolvency and Bankruptcy Code, 2016, if a creditor appoints an independent insolvency professional to represent them at a meeting, who bears the fee?

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