Briefly comment on the rights of Secured Creditors in a Repayment Plan under Section 105 of the Insolvency and Bankruptcy Code, 2016.

Section 105 of the Insolvency & Bankruptcy Code, 2016 deals with the repayment plan for individuals and partnership firms. According to Section 105, the debtor shall prepare, in consultation with the resolution professional, a repayment plan containing a proposal to the creditors for restructuring of his debts or affairs. The repayment plan may authorise or require the resolution professional to: Carry on the debtor's business or trade on his behalf or in his name; or Realise the assets of the debtor; or Administer or dispose of any funds of the debtor. The repayment plan shall include the following, namely: Justification for the preparation of such repayment plan and reasons on the basis of which the creditors may agree upon the plan. Provision for payment of fee to the resolution professional. Such other matters as may be specified. Rights of Secured Creditors in a Repayment Plan: While Section 105 outlines the general framework for a repayment plan, the specific rights of secured creditors are crucial. Under the IBC, a secured creditor has a right to enforce its security interest. In the context of a repayment plan: The repayment plan must address how the claims of secured creditors will be handled. It cannot unilaterally extinguish or modify the security interest without the consent of the secured creditor. Secured creditors typically have a stronger position as their debt is backed by specific assets. The repayment plan would need to propose a mechanism for repayment that respects this security, which could involve: Full or partial repayment of the secured debt. Realization of the secured asset to satisfy the debt. Restructuring the terms of the secured debt (e.g., extended payment schedule, reduced interest), subject to the creditor's agreement. The approval of the repayment plan by the creditors (including secured creditors) is essential. If a secured creditor does not agree to the terms proposed in the plan, their rights to enforce their security interest may remain, subject to the provisions of the IBC. The plan must ensure equitable treatment of creditors, and any deviation from the priority waterfall (where secured creditors typically rank higher than unsecured creditors) would require strong justification and consent. In essence, the repayment plan under Section 105 must be formulated in a manner that acknowledges and seeks to resolve the claims of secured creditors, often requiring their explicit consent for any modification of their rights or security.