Section 136 - Administration and Distribution of Estate of Bankrupt under the Insolvency and Bankruptcy Code 2016

Section 136 of the Insolvency and Bankruptcy Code, 2016 places responsibility on the bankruptcy trustee to conduct the administration and distribution of the estate of the bankrupt in accordance with Chapter V of the relevant Part of the Code.

Core requirement: The bankruptcy trustee must administer and distribute the bankrupt's estate in accordance with the provisions of Chapter V.

Section 136 - Statutory provision

The bankruptcy trustee shall conduct the administration and distribution of the estate of the bankrupt in accordance with the provisions of Chapter V.

Meaning and purpose of Section 136

Section 136 is a connecting provision. It makes clear that administration and distribution of the bankruptcy estate are not governed by Section 136 alone. The bankruptcy trustee must follow the detailed provisions contained in Chapter V dealing with administration and distribution of the estate.

Role of the bankruptcy trustee

The bankruptcy trustee is the insolvency professional appointed to perform the functions assigned under the bankruptcy provisions of the Code. Under Section 136, the trustee is responsible for conducting the administration of the estate and its distribution in accordance with the statutory framework.

Estate of the bankrupt

The expression estate of the bankrupt refers to the property and interests that form part of the bankruptcy estate under the applicable provisions of the Code. The precise scope of the estate, including property included in or excluded from it, is determined by the relevant provisions governing the bankruptcy estate.

Administration and distribution under Chapter V

Chapter V contains the detailed legal framework governing administration and distribution of the estate. It addresses matters connected with the bankruptcy trustee's functions, the property forming part of the estate, realisation and administration of assets, proof and ranking of claims, distribution and related matters. Section 136 requires the trustee to carry out administration and distribution subject to those provisions.

Connection with the creditors' process

Sections 131 to 135 deal with creditor claims, preparation of the creditor list, meetings and voting. Section 136 then links the bankruptcy process to the statutory framework for administration and distribution of the estate.

What follows Section 136?

Section 137 deals with completion of administration. The subsequent provisions address the discharge order, effect of discharge and disqualifications applicable to a bankrupt.

Related provisions

Section 131 - Registration of claims Section 132 - Preparation of list of creditors Section 133 - Summoning of meeting of creditors Section 134 - Conduct of meeting of creditors Section 135 - Voting rights of creditors Section 137 - Completion of administration

Official legal resources

For the current statutory text, commencement notifications and applicable subordinate legislation, refer to India Code, the Insolvency and Bankruptcy Board of India - Acts and the IBBI Updated Legal Framework.

Important: Bankruptcy provisions concerning individuals and partnership firms operate subject to the relevant commencement notifications and applicable rules and regulations for the particular category of debtor. Current official material should be checked for the proceeding concerned.

This page is intended as a legal information resource and should be read with the current official Code, notifications, rules and regulations.