Section 150 of The Insolvency and Bankruptcy Code, 2016.
- (1)The bankrupt shall assist the bankruptcy trustee in carrying out his functions under this Chapter by—
- (a)giving to the bankruptcy trustee the information of his affairs;
- (b)attending on the bankruptcy trustee at such times as may be required;
- (c)giving notice to the bankruptcy trustee of any of the following events which have occurred after the bankruptcy commencement date,—
- (i)acquisition of any property by the bankrupt;
- (ii)devolution of any property upon the bankrupt;
- (iii)increase in the income of the bankrupt;
- (d)doing all other things as may be prescribed.
- (2)The bankrupt shall give notice of the increase in income or acquisition or devolution of property under clause (c) of sub-section (1) within seven days of such increase, acquisition or devolution.
- (3)The bankrupt shall continue to discharge the duties under sub-section (1) other than the duties under clause (c) even after the discharge under section 138.
Summary
- The bankrupt person must assist the bankruptcy trustee by providing details about their financial affairs.
- The bankrupt must attend meetings with the trustee whenever requested.
- The bankrupt is required to report any property acquired, property inherited, or increase in income that occurs after the bankruptcy starts.
- The notice of any new property, inheritance, or income increase must be given to the trustee within seven days.
- Even after being officially discharged and cleared of debts, the bankrupt must continue to assist and attend meetings, though they no longer have to report new property or income.
Practical examples
FAQ
1. What are the duties of a bankrupt person under the Insolvency and Bankruptcy Code, 2016?
Under Section 150 of the Insolvency and Bankruptcy Code, 2016, the bankrupt must assist the trustee by providing financial information, attending requested meetings, and reporting new assets or income increases.
2. Is a bankrupt person required to report an increase in income under the Insolvency and Bankruptcy Code, 2016?
Yes, under Section 150 of the Insolvency and Bankruptcy Code, 2016, the bankrupt must report any income increase, asset acquisition, or property devolution to the trustee.
3. What is the timeline for a bankrupt to report new property under the Insolvency and Bankruptcy Code, 2016?
According to Section 150 of the Insolvency and Bankruptcy Code, 2016, the bankrupt must notify the trustee within seven days of acquiring new property, inheriting property, or experiencing an income increase.
4. Do the duties of a bankrupt end after discharge under Section 150 of the Insolvency and Bankruptcy Code, 2016?
No, under Section 150 of the Insolvency and Bankruptcy Code, 2016, the bankrupt must continue to assist and attend meetings even after discharge, though the duty to report new income or property ceases after discharge.
Test yourself
Q1.Under Section 150 of the Insolvency and Bankruptcy Code, 2016, within how many days must a bankrupt notify the bankruptcy trustee about an increase in their income?
Q2.Under Section 150 of the Insolvency and Bankruptcy Code, 2016, which of the following events occurring after the bankruptcy commencement date must be notified to the bankruptcy trustee?
Q3.According to Section 150 of the Insolvency and Bankruptcy Code, 2016, what happens to the bankrupt's duty to attend on the bankruptcy trustee after a discharge order is passed?
Q4.Under Section 150 of the Insolvency and Bankruptcy Code, 2016, which specific duty does NOT continue after the bankrupt receives a discharge order under Section 138?