“Any modification suggested by creditors need consent of the debtor in respect of Repayment plan in case of individual or firm solvency.” Comment briefly on the statement narrating the provisions in respect of conducting

Part III of the Insolvency and Bankruptcy Code, 2016 (IBC) provides separate insolvency resolution process for individuals/partnership firms. Application to Debt Recovery Tribunal (DRT) for initiating Insolvency Resolution Process may be made by a creditor or the debtor (individual or firm) who has committed default. Such application may be made either personally or through a resolution professional. The Debtor shall prepare a Repayment Plan, in consultation with the Resolution Professional. The Repayment plan consists of justification for preparation of repayment plan and reasons on the basis of which the creditors may agree upon the plan. It shall be noted that the creditors are not involved in the preparation of the repayment plan. However, creditors have the right to approve, reject or modify the repayment plan. The Resolution Professional shall verify the repayment plan for its validity and legal compliance. Further, the Resolution Professional may summon a meeting of creditors to consider the plan. Where creditors' meeting is needed, the Resolution Professional shall consider the convenience of creditors in fixing the date and venue of the meeting of the creditors (not less than 14 days and not more than 28 days from the date of submission of report). The Resolution Professional shall conduct the meeting of creditors. In the meeting, the creditors may decide to approve, modify or reject the repayment plan. Where modifications are suggested by the creditors, the Resolution Professional shall ensure that consent of the debtor is obtained for each modification. A creditor shall be entitled to vote at every meeting of the creditors in respect of the repayment plan as per the voting share assigned to him. A creditor shall not be entitled to vote in respect of a debt for an indeterminate amount. However, a creditor shall not be entitled to vote in a meeting of the creditors if he- is not a creditor mentioned in the list of creditors; or is an associate (i.e., related party) of the debtor.