Section 140 of The Insolvency and Bankruptcy Code, 2016.
- (1)The bankrupt shall, from the bankruptcy commencement date, be subject to the disqualifications mentioned in this section.
- (2)In addition to any disqualification under any other law for the time being in force, a bankrupt shall be disqualified from—
- (a)being appointed or acting as a trustee or representative in respect of any trust, estate or settlement;
- (b)being appointed or acting as a public servant;
- (c)being elected to any public office where the appointment to such office is by election; and
- (d)being elected or sitting or voting as a member of any local authority.
- (3)Any disqualification to which a bankrupt may be subject under this section shall cease to have effect, if—
Summary
- A bankrupt individual is subject to disqualifications starting from the bankruptcy commencement date.
- The bankrupt is disqualified from being appointed or acting as a trustee or representative for any trust, estate, or settlement.
- The bankrupt cannot be appointed or act as a public servant, meaning an officer of the government.
- The bankrupt is disqualified from being elected to any public office that is filled by election.
- The bankrupt cannot be elected, sit, or vote as a member of any local authority.
- These disqualifications end if the bankruptcy order is modified or recalled under Section 142, or when the bankrupt is discharged under Section 138.
Practical examples
FAQ
1. What are the main political and professional disqualifications under Section 140 of the Insolvency and Bankruptcy Code, 2016?
Under Section 140 of the Insolvency and Bankruptcy Code, 2016, a bankrupt person is disqualified from being appointed as a trustee, acting as a public servant, being elected to any public office, or voting in any local authority.
2. When do the disqualifications under Section 140 of the Insolvency and Bankruptcy Code, 2016, begin and end?
Under Section 140 of the Insolvency and Bankruptcy Code, 2016, the disqualifications begin on the bankruptcy commencement date and cease when the bankruptcy order is modified or recalled under Section 142, or when a discharge order is passed under Section 138.
3. How does Section 140 of the Insolvency and Bankruptcy Code, 2016, define a public servant?
Under Section 140 of the Insolvency and Bankruptcy Code, 2016, the term public servant has the same meaning as assigned to it in Section 21 of the Indian Penal Code, 1860.
Test yourself
Q1.Under Section 140 of the Insolvency and Bankruptcy Code, 2016, from what date do the disqualifications of a bankrupt person begin?
Q2.Under Section 140 of the Insolvency and Bankruptcy Code, 2016, which of the following positions is a bankrupt individual disqualified from holding?
Q3.According to Section 140 of the Insolvency and Bankruptcy Code, 2016, which other section's action can bring a bankrupt's disqualification to an end besides a discharge under Section 138?
Q4.Under Section 140 of the Insolvency and Bankruptcy Code, 2016, which law is referred to for the meaning of the term public servant?