Glossary
Committee of creditors
The body of financial creditors that takes the commercial decisions in a corporate insolvency resolution process, including whether to approve a resolution plan.
The committee of creditors is the decision-making body in a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. It is made up of the corporate debtor's financial creditors, who vote by the share of debt they hold. It decides whether a resolution plan is approved, and its commercial judgement on that question is not open to judicial review.
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 widened the committee's role from 26 May 2026. A ninety per cent vote is needed for withdrawal under section 12A. A sixty-six per cent vote may restore a process under section 33 or replace a liquidator under section 34A. Section 21(11) gives the committee a supervisory role over liquidation, and the Board's regulations of 4 June 2026 add a route to dissolution. The thresholds are stated as at 21 September 2026.
Used in
- In a drug company's insolvency resolution the licence and trial permission continue on payment of current dues, and the data retention clocks keep running
- How a financial creditor starts insolvency against a company under section 7 of the Insolvency and Bankruptcy Code
- Half the new insolvency law is in force, and the half everyone talked about is not
Sources
- ActThe Insolvency and Bankruptcy Code, 2016 (No. 31 of 2016), as consolidated by the Insolvency and Bankruptcy Board of Indiaibbi.gov.inOn this site: The Insolvency and Bankruptcy Code, 2016
- ActThe Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026)ibbi.gov.inOn this site: The Insolvency and Bankruptcy Code (Amendment) Act, 2026
- NotificationMinistry of Corporate Affairs notification S.O. 2625(E) dated 22 May 2026, appointing 26 May 2026 for certain provisions of the Insolvency and Bankruptcy Code (Amendment) Act, 2026ibbi.gov.inOn this site: The Insolvency and Bankruptcy Code (Amendment) Act, 2026
Cite this termCommittee of creditors. Juris Eagle glossary. Stated as at 21 September 2026. https://juriseagle.com/glossary/committee-of-creditors