Section 148 - Release of Bankruptcy Trustee under the Insolvency and Bankruptcy Code 2016

Section 148 of the Insolvency and Bankruptcy Code, 2016 governs when a bankruptcy trustee is released from office and clarifies the continuing duty of an outgoing trustee to share information and co-operate with the new bankruptcy trustee.

Updated: 30 September 2026

Text of Section 148 - Release of bankruptcy trustee

(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 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.

Meaning and effect of Section 148

Section 148 deals with the legal release of a bankruptcy trustee from office. It covers two principal situations: first, where the existing trustee is replaced or ceases to hold office and a new trustee is appointed; and second, where the trustee has completed administration of the bankruptcy process.

Release after replacement, resignation or vacancy: Under sub-section (1), release takes effect from the date on which the Adjudicating Authority appoints a new bankruptcy trustee following replacement under Section 145, resignation under Section 146, or a vacancy dealt with under Section 147.

Continuing duty to co-operate: Sub-section (2) makes clear that release does not end the outgoing trustee's obligation to share information concerning the bankruptcy process and to co-operate with the new trustee as required.

Release after completion of administration: Under sub-section (3), a trustee who completes administration of the bankruptcy process is released from duties when the committee of creditors approves the trustee's report under Section 137.

Related provisions

Section 148 operates with the provisions governing completion of administration and changes in the office of the bankruptcy trustee.

Practical significance

The provision ensures continuity in a bankruptcy process when the person acting as bankruptcy trustee changes. The outgoing trustee is released from office at the statutory point specified in Section 148, but the information-sharing and co-operation obligation under sub-section (2) continues despite that release. Where administration has been completed, release is linked to approval of the trustee's report by the committee of creditors under Section 137.

Legal reference: Section 148 forms part of Chapter IV of Part III of the Insolvency and Bankruptcy Code, 2016. For the current consolidated legislation and regulatory framework, consult the official India Code and Insolvency and Bankruptcy Board of India resources linked on this page.