Section 151: Rights of Bankruptcy Trustee under the Insolvency and Bankruptcy Code, 2016
Section 151 of the Insolvency and Bankruptcy Code, 2016 (IBC) specifies the legal capacities that a bankruptcy trustee may exercise in the trustee's official name for performing functions under Chapter V relating to administration and distribution of the estate of a bankrupt.
Text of Section 151 - Rights of bankruptcy trustee
For the purpose of performing his functions under this Chapter, the bankruptcy trustee may, by his official name -
(a) hold property of every description;
(b) make contracts;
(c) sue and be sued;
(d) enter into engagements in respect of the estate of the bankrupt;
(e) employ persons to assist him;
(f) execute any power of attorney, deed or other instrument; and
(g) do any other act which is necessary or expedient for the purposes of or in connection with the exercise of his rights.
Meaning and scope of Section 151
Section 151 enables the bankruptcy trustee to act in an official capacity while administering the bankruptcy estate. The provision gives the trustee the legal capacity needed to possess and manage property, enter contractual arrangements, participate in legal proceedings, engage assistance and execute documents connected with the bankruptcy estate.
The words "by his official name" indicate that these acts are undertaken by the bankruptcy trustee in the statutory office and for the purposes of the bankruptcy process. The rights in Section 151 must therefore be read with the trustee's functions under Section 149, the bankrupt's duties under Section 150, the general powers under Section 152 and acts requiring creditors' approval under Section 153.
Rights available to the bankruptcy trustee
The provision expressly permits the trustee to hold property of every description and make contracts. It also enables the trustee to sue and be sued in the official name, enter engagements concerning the bankrupt's estate, employ persons for assistance and execute powers of attorney, deeds and other instruments.
Clause (g) is a supporting power. It permits any other act that is necessary or expedient for, or connected with, exercise of the trustee's rights. It should be understood within the statutory bankruptcy framework and alongside other provisions of the IBC governing the trustee's functions and powers.
Relationship with Sections 152 and 153
Section 152 separately specifies general powers exercisable by the bankruptcy trustee while discharging functions under Chapter V. Section 153 identifies specified acts for which the bankruptcy trustee may act after procuring approval of the committee of creditors. Section 151 should therefore not be read in isolation as an unrestricted authority overriding those statutory conditions.
Page reviewed: 30 September 2026.