Section 88: General Duties of Debtor under the Insolvency and Bankruptcy Code, 2016

Section 88 is part of the fresh start process under Part III, Chapter II of the Insolvency and Bankruptcy Code, 2016. It requires the debtor to cooperate with the resolution professional, provide information about the debtor's affairs and promptly disclose material errors, omissions and relevant changes in financial circumstances.

Core obligation: The debtor must provide information and cooperation throughout the fresh start process and must inform the resolution professional as soon as reasonably possible when supplied information is materially wrong or incomplete, or when a later financial change affects the process.

Section 88 - Statutory Provisions

The debtor shall-

(a) make available to the resolution professional all information relating to his affairs, attend meetings and comply with the requests of the resolution professional in relation to the fresh start process.

(b) inform the resolution professional as soon as reasonably possible of-

(i) any material error or omission in relation to the information or document supplied to the resolution professional; or

(ii) any change in financial circumstances after the date of application, where such change has an impact on the fresh start process.

Duty to Provide Information

The debtor must make available all information relating to the debtor's affairs that is required in connection with the fresh start process. This duty supports the resolution professional's examination of the application, qualifying debts and other matters arising under Chapter II.

Duty to Attend Meetings and Cooperate

Section 88 expressly requires the debtor to attend meetings and comply with requests made by the resolution professional in relation to the fresh start process. The obligation is therefore continuing and is not limited to the information originally filed with the application.

Duty to Correct Material Errors or Omissions

If the debtor discovers a material error or omission in information or a document already supplied to the resolution professional, the debtor must disclose it as soon as reasonably possible. The statutory language focuses on material errors or omissions that may be relevant to the administration of the fresh start process.

Changes in Financial Circumstances

The debtor must also inform the resolution professional of a change in financial circumstances occurring after the date of the application when that change has an impact on the fresh start process. This obligation enables the process to proceed on current and accurate financial information.

Consequences of Non-Compliance

Section 90 permits the resolution professional to apply to the Adjudicating Authority for directions requiring compliance with the duties referred to in Section 88 when the debtor fails to comply. The fresh start provisions should therefore be read together with the enforcement and revocation provisions that follow Section 88.

Meaning of Important Terms

Debtor: The Code defines a debtor as a person who owes a debt to any person.

Resolution professional: For Part III, Section 79 defines the resolution professional as an insolvency professional appointed under that Part for conducting the fresh start process or insolvency resolution process.

Fresh start process: Chapter II of Part III establishes the statutory process through which an eligible debtor may seek relief in respect of qualifying debts, subject to the conditions and procedure laid down in the Code.

Adjudicating Authority: The expression refers to the adjudicating forum designated under the applicable provisions of the Code for proceedings under Part III.

Related Provisions

This page is a statutory information resource. The official text, amendments, commencement notifications, rules and regulations applicable on the relevant date should be checked before relying on the provision in a proceeding.