Home > Insolvency and Bankruptcy Code 2016 > Section 156

Section 156: Delivery of Property and Documents to Bankruptcy Trustee

Section 156 of the Insolvency and Bankruptcy Code, 2016 deals with the obligation to deliver property and relevant documents to the bankruptcy trustee for the purposes of the bankruptcy process.

Text of Section 156

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.

Meaning and Scope of Section 156

The provision facilitates the bankruptcy trustee's control and administration of the bankrupt's estate. Where property, books, papers or other records that the bankruptcy trustee is required to possess are held by the bankrupt, the bankrupt's banker or agent, or another person, Section 156 requires their delivery to the bankruptcy trustee.

The obligation is therefore not confined to the bankrupt personally. Its wording extends to bankers, agents and any other person who has possession of the property or records that the bankruptcy trustee is required to take possession of for the bankruptcy process.

Key Expressions

Bankrupt

Under Section 79 of the Insolvency and Bankruptcy Code, 2016, for Part III of the Code, "bankrupt" includes a debtor who has been adjudged as bankrupt by a bankruptcy order under Section 126, an undischarged insolvent under the applicable law, and a person in respect of whom a bankruptcy order has been made under the Code.

Bankruptcy trustee

The bankruptcy trustee is the insolvency professional appointed for the bankruptcy process in accordance with the applicable provisions of Part III of the Code. Section 154 provides that the estate of the bankrupt vests in the bankruptcy trustee immediately from the date of appointment, without the need for conveyance, assignment or transfer.

Property and records

Section 156 expressly covers property as well as books, papers and other records required by the bankruptcy trustee for the bankruptcy process. The provision supports the trustee's ability to identify, take control of and administer the bankruptcy estate in accordance with the Code.

Relationship with Sections 154 to 157

Section 156 forms part of the statutory framework dealing with administration of the bankrupt's estate. Section 154 concerns vesting of the estate in the bankruptcy trustee; Section 155 identifies what is included in and excluded from the estate; Section 156 requires delivery of relevant property and documents; and Section 157 addresses acquisition of control over property of the bankrupt by the bankruptcy trustee.

Legal note: The application of the Insolvency and Bankruptcy Code depends on the relevant category of debtor and the provisions and notifications brought into force. The current statutory text, commencement notifications and applicable regulations should be checked for the particular proceeding.

Official Legal Resources

For the authoritative legislation and current regulatory framework, refer to the official India Code text of the Insolvency and Bankruptcy Code, 2016 and the Insolvency and Bankruptcy Board of India legal framework. The IBBI legal framework also publishes amendments, regulations, notifications, circulars and guidelines issued under the Code.

Page reviewed: 30 September 2026.