Corporate Restructuring, Valuation and Insolvency · Convening and Conduct of Meetings of Committee of Creditors

Section 134 IBC: Conduct of Meeting of Creditors in Bankruptcy

Updated 11 October 2026 · Fact-checked

Under Section 134 of the IBC, the bankruptcy trustee convenes the creditors' meeting, decides the quorum, and conducts it only if the quorum is present. Creditors may set up a committee of creditors and pass other resolutions. The trustee records and signs the minutes and cannot adjourn for more than seven days at a time.

Understand Meetings of Creditors under Section 134 in Bankruptcy

Section 134 sits in the part of the Code that deals with bankruptcy of individuals and partnership firms. After a bankruptcy order, the bankruptcy trustee takes charge of the estate. The creditors then meet to decide how the process should be supervised.

The trustee calls this meeting under Section 133. The notice goes out within twenty-one days from the bankruptcy commencement date. The meeting date cannot be later than twenty-one days from that date. The notice carries proxy voting forms and states how proxy voting works.

Section 134 then governs how the meeting runs. The trustee is the convener. The trustee decides the quorum and can conduct the meeting only when that quorum is present. Note that the Code leaves the quorum to the trustee. It does not fix a number.

The business is limited to two things. One is the establishment of a committee of creditors. The other is any other business the trustee thinks fit. A resolution may be passed on this business. The trustee must have minutes recorded, signed and kept as part of the records of the bankruptcy process.

Voting is covered by Section 135. Each creditor on the Section 132 list, or his proxy, votes according to the voting share fixed by the resolution professional as the Board specifies. Creditors cannot vote on an unliquidated debt. Creditors not in the list, those not given notice by the trustee, and associates of the bankrupt cannot vote.

Key rules to remember

Convener of the meeting: Convener = bankruptcy trustee (s. 134(1)); The trustee convenes the meeting summoned under Section 133.
Quorum: Quorum decided by the bankruptcy trustee; meeting conducted only if quorum is present (s. 134(2)); The Code gives no fixed number. Do not invent one.
Business of the meeting: (a) establish a committee of creditors; (b) any other business the trustee thinks fit (s. 134(3)); A resolution may be passed on this business.
Minutes: Recorded, signed and retained as part of the records of the bankruptcy process (s. 134(4)); The duty is on the trustee.
Adjournment limit: Not more than 7 days at a time (s. 134(5)); The trustee cannot adjourn beyond this at one go.
Summoning the meeting: Notice within 21 days of bankruptcy commencement date; meeting date not later than 21 days from that date (s. 133); Notice goes to every creditor in the Section 132 list, with proxy forms.
Voting entitlement: Vote per voting share; no vote for unliquidated debt; no vote for unlisted/unnoticed creditors or associates of the bankrupt (s. 135); The resolution professional determines the voting share as specified by the Board.

How to solve Meetings of Creditors under Section 134 in Bankruptcy questions

Use this order for any question on a creditors' meeting in bankruptcy. It keeps the answer in the provision, analysis, conclusion format.

1Identify the process. Confirm it is individual or firm bankruptcy, not CIRP of a corporate debtor. That decides whether the trustee (Sections 133 to 135) or the resolution professional (Section 24) acts.
2Check the summoning facts. Was notice issued within twenty-one days of the bankruptcy commencement date, to creditors in the Section 132 list, with proxy forms?
3Check the convener and quorum. The trustee convenes and decides the quorum. Ask if the quorum was present before the meeting was conducted.
4Test the business. Was it the committee of creditors or other business the trustee thought fit?
5Test each voter against Section 135. Is the creditor listed and noticed? Is the debt liquidated? Is the creditor an associate of the bankrupt?
6Test the procedure. Check minutes were recorded, signed and retained, and any adjournment did not exceed seven days at a time.
7State the conclusion clearly. Say whether the meeting or the vote is valid, and name the section for each point.
8Add a drafting or compliance point if asked, such as the notice contents or the minutes.

Quickest way: Five-point check for a bankruptcy creditors' meeting

When to use it: Use it for short case questions where you must say quickly whether a meeting or a vote was proper.

Who convened? It must be the bankruptcy trustee.
Was the quorum decided by the trustee and present?
Is the business a committee of creditors or trustee-approved business?
Is every voter listed, noticed, not an associate, and voting on a liquidated debt?
Were minutes signed and kept, and was any adjournment seven days or less?

Common mistakes in Meetings of Creditors under Section 134 in Bankruptcy

Treating the Section 134 meeting as a CoC meeting under Section 24.
Both are creditors' meetings, so students merge them.
Fix: Section 24 is for corporate insolvency and is conducted by the resolution professional. Section 134 is for bankruptcy and is conducted by the bankruptcy trustee.
Stating a fixed quorum number or a percentage.
Students recall company meeting rules.
Fix: Write that the bankruptcy trustee decides the quorum and conducts the meeting only if it is present.
Saying the trustee may adjourn the meeting for any period.
Students forget sub-section (5).
Fix: Adjournment cannot exceed seven days at a time.
Allowing an associate of the bankrupt or an unliquidated debt holder to vote.
Students link voting only to the amount owed.
Fix: Apply Section 135(3) and (4). Those creditors cannot vote on that basis.
Mixing Section 134 with Section 108 (repayment plan meetings).
Both deal with conduct of creditors' meetings and a seven-day adjournment.
Fix: Section 108 is for the repayment plan in insolvency of individuals and is run by the resolution professional. Section 134 is for bankruptcy and is run by the trustee.

Worked examples

Example 1

Rajesh Malhotra is declared bankrupt. The bankruptcy trustee calls the creditors' meeting. Only a few creditors attend. The trustee, who had not decided any quorum, holds the meeting anyway and passes a resolution forming a committee of creditors. Advise on the validity of the meeting.

Show the solution

Provision: Section 134(2) says the trustee shall decide the quorum and conduct the meeting only if the quorum is present.
Analysis: The trustee never decided a quorum, so there was no standard against which to say the quorum was present. Forming a committee of creditors is valid business under Section 134(3)(a), but only in a properly constituted meeting.
Conclusion: The meeting was not conducted in line with Section 134(2). The trustee should decide the quorum and reconvene the meeting with proper notice.

Answer: The meeting is defective because the trustee held it without deciding a quorum and confirming its presence, as Section 134(2) requires. The resolution forming the committee of creditors is therefore open to challenge. The trustee should fix the quorum and hold a fresh meeting.

Example 2

At a creditors' meeting for the bankrupt Sunita Rao, the trustee adjourns the meeting for ten days. Two creditors, Meera Traders (listed in the Section 132 list, holding a liquidated debt of ₹8,00,000) and Vikram Rao (the bankrupt's brother, an associate, holding ₹3,00,000), both wish to vote. Comment on the adjournment and on who can vote.

Show the solution

Adjournment: Section 134(5) bars adjourning for more than seven days at a time. Ten days exceeds that limit.
Meera Traders: it is listed, was given notice, and its debt is liquidated. Section 135(1) lets it vote according to its voting share.
Vikram Rao: Section 135(4)(b) says creditors who are associates of the bankrupt cannot vote.
Conclusion: the adjournment is not permitted and Vikram cannot vote.

Answer: The ten-day adjournment breaches the seven-day limit in Section 134(5). Meera Traders can vote as per its voting share. Vikram Rao cannot vote because he is an associate of the bankrupt under Section 135(4)(b).

Exam tips

Write the section number next to each rule: 134 for conduct, 133 for summoning, 135 for voting.
In case questions, name the actor. Bankruptcy means the trustee. Corporate CIRP means the resolution professional.
Do not state a quorum figure. Say the trustee decides it.
If asked for differences between the two meetings, give a short two-column style list in bullet form: convener, process, governing section, voting basis.
Close every answer with a clear conclusion on validity.

Practice questions from Convening and Conduct of Meetings of Committee of Creditors

Meetings of Creditors under Section 134 in Bankruptcy: frequently asked questions

Who conducts the creditors' meeting under Section 134 IBC?

The bankruptcy trustee convenes and conducts it. The trustee decides the quorum and may hold the meeting only if the quorum is present.

What business is done at the meeting of creditors in bankruptcy?

The creditors may establish a committee of creditors. They can also deal with any other business the bankruptcy trustee thinks fit. A resolution may be passed on this business.

What is the difference between a CoC meeting and a meeting of creditors in bankruptcy?

A CoC meeting under Section 24 is for a corporate debtor and is conducted by the resolution professional. The Section 134 meeting is for bankruptcy and is convened and conducted by the bankruptcy trustee. Voting rights in bankruptcy are in Section 135.

How long can the trustee adjourn the meeting?

Not more than seven days at a time. This limit is in Section 134(5).