Section 156 of The Insolvency and Bankruptcy Code, 2016.
The bankrupt, his banker or agent or any other person having possession of any property, books, papers or other records which bankruptcy trustee is required to take possession for the purposes of the bankruptcy process shall deliver the said property and documents to the bankruptcy trustee.
Summary
- The bankrupt is legally obligated to deliver all property and documents to the bankruptcy trustee.
- The bankrupt's banker or agent must deliver any estate property or records in their possession to the trustee.
- Any other person holding property, books, papers, or records that the trustee is required to possess must deliver them.
- This delivery requirement covers any asset or document necessary for conducting the bankruptcy process.
Practical examples
FAQ
1. Who is required to deliver property to the bankruptcy trustee under the Insolvency and Bankruptcy Code, 2016?
Under Section 156 of the Insolvency and Bankruptcy Code, 2016, the bankrupt, their banker, their agent, or any other person in possession of the bankrupt's property or records must deliver them to the trustee.
2. Does a bank have to deliver a bankrupt's records under the Insolvency and Bankruptcy Code, 2016?
Yes, Section 156 of the Insolvency and Bankruptcy Code, 2016 explicitly includes the bankrupt's banker as an entity that must deliver any property, books, or records to the trustee.
3. What happens to books and papers in possession of third parties under Section 156 of the Insolvency and Bankruptcy Code, 2016?
Under Section 156 of the Insolvency and Bankruptcy Code, 2016, any person having possession of books, papers, or records that the trustee is required to take possession of must deliver them.
Test yourself
Q1.Under Section 156 of the Insolvency and Bankruptcy Code, 2016, which of the following parties is NOT explicitly named as being required to deliver property and documents to the bankruptcy trustee?
Q2.Under Section 156 of the Insolvency and Bankruptcy Code, 2016, what specific items must be delivered to the bankruptcy trustee by those in possession of them?
Q3.Under Section 156 of the Insolvency and Bankruptcy Code, 2016, what is the bankrupt's banker's obligation if they hold records or property of the bankrupt?
Q4.How does the delivery mandate under Section 156 of the Insolvency and Bankruptcy Code, 2016 relate to the duties of the bankrupt under Section 150?