Section 148 of The Insolvency and Bankruptcy Code, 2016.
- (1)A bankruptcy trustee shall be released from his office with effect from the date on which the Adjudicating Authority passes an order appointing a new bankruptcy trustee in the event of replacement, resignation or occurrence of vacancy under sections 145, 146 or section 147, as the case may be.
- (2)Notwithstanding the release under sub-section (1), the bankruptcy trustee who has been so released, shall share all information with the new bankruptcy trustee in respect of the bankruptcy process and co-operate with the new bankruptcy trustee in such matters as may be required.
- (3)A bankruptcy trustee who has completed the administration of the bankruptcy process shall be released of his duties with effect from the date on which the committee of creditors approves the report of the bankruptcy trustee under section 137.
Summary
- A bankruptcy trustee is officially released from office once a new trustee is appointed in cases of replacement, resignation, or vacancy.
- The release takes effect from the date the Adjudicating Authority passes the order appointing the new trustee.
- Even after being released, the outgoing trustee must share all information and cooperate with the new trustee.
- If a trustee successfully completes the administration of the bankruptcy process, their release takes effect from a different milestone.
- Upon completion of the process, the trustee is released from the date the committee of creditors approves their final report under Section 137.
Practical examples
FAQ
1. When does a bankruptcy trustee get released upon completing the bankruptcy process under Section 148 of the national insolvency law?
Under Section 148 of the national insolvency law, a trustee who has completed the administration is released from the date the committee of creditors approves their administration report under Section 137.
2. Is a released bankruptcy trustee completely free from cooperation duties under Section 148 of the Indian bankruptcy Code?
No, under Section 148 of the Indian bankruptcy Code, despite being released, the outgoing trustee must still share all information and cooperate with the new trustee.
3. What triggers the release of a replaced or resigned trustee under Section 148 of the 2016 insolvency law?
Under Section 148 of the 2016 insolvency law, the release is triggered on the date the Adjudicating Authority passes an order appointing a new bankruptcy trustee.
Test yourself
Q1.Under Section 148 of The Insolvency and Bankruptcy Code, 2016, from what date is a bankruptcy trustee who has completed the administration released of their duties?
Q2.Under Section 148 of The Insolvency and Bankruptcy Code, 2016, when does the release of a bankruptcy trustee replaced under Section 145 or who has resigned under Section 146 take effect?
Q3.If a trustee is replaced under Section 145 of The Insolvency and Bankruptcy Code, 2016, what post-release obligation does Section 148 of The Insolvency and Bankruptcy Code, 2016 impose on them?
Q4.Under Section 148 of The Insolvency and Bankruptcy Code, 2016, which of the following is NOT a situation that leads to the release of a bankruptcy trustee?