Committee of Creditors (CoC)
Role and Accountability
The Committee of Creditors is the central decision-making body in any IBC resolution. It consists of all financial creditors of the corporate debtor, with voting rights proportional to the value of their admitted financial debt. The CoC's most critical power is approving a resolution plan — the approved plan is binding on the corporate debtor, all creditors, guarantors, and third parties. The CoC can also decide to liquidate the corporate debtor if no feasible resolution plan is found.
- CoC meetings can be called by the RP or on demand by members holding at least 33% voting share.
- Most decisions require 51% voting share; a resolution plan requires 66% approval.
- The CoC is empowered to replace the IRP/RP and to authorise the RP to undertake specific actions on behalf of the corporate debtor.
- Under the new amendment, the CoC must record reasons for approving or rejecting a resolution plan — this brings discipline and reduces arbitrary decisions.
- The Supreme Court has held that the CoC's commercial wisdom in approving a resolution plan is not ordinarily interferable by courts.
● Tracked since March 10, 2026 · last seen March 30, 2026 · updates as the daily brief publishes
See it in today’s brief.
Daily current affairs with every static concept explained in place.
Read the daily brief