Section 21: Meeting of creditors to be convened

1) The inquiry officer shall, before submitting his or her report to the Court, convene a meeting of the creditors of the Company to discuss his or her report in order to know the views of the creditors on the future plan of the Company which has become insolvent, and every person who is identified as a creditor of the Company from the accounts and other records of the Company shall also be invited to attend such meeting.

2) A notice indicating the venue, date, time and agenda of the meeting shall be given to every person identified as a creditor under sub-section (1) in advance of at least seven days, and the notice shall also be published at least two times in a daily newspaper of national circulation.

3) While giving a notice pursuant to sub-section (2), it may be given by a letter, telex, telefax, e-mail or any other means of electronic communication which can be recorded.

4) Where any person other than a person mentioned in sub-section (1) makes any claim against the Company as a creditor, the inquiry official may ask that person to submit evidence thereof and a detailed description of the claim against the Company.

5) The inquiry official may dismiss the claim of a person who fails to submit the evidence or description referred to in sub-section (4), and where the claim is so dismissed, such person shall not be entitled to attend the meeting of creditors. Provided that a person shall not be considered to be a creditor of the Company by the reason only that the person has taken part in the meeting of creditors.

6) The inquiry official shall chair the meeting of creditors.

7) The meeting of creditors shall make a decision by majority. In the event of a tie, a decision shall be made by lot. The inquiry official may ascertain the voting right of creditors in proportion to the claim made on the debts due to be paid immediately by or payable by the Company and specify the mode of voting.

8) The directors of the Company or the officers invited by the inquiry official may participate in the meeting of creditors. Provided that they are not entitled to take part in voting.

9) Except where any concerned person makes an application to the Court showing the reasons and grounds that injustice has been done to that person, no question may be raised in any court about the meeting of creditors and the business executed by it.