Section 141 in The Insolvency and Bankruptcy Code, 2016

Title: Restrictions on bankrupt.

Description: (1) A bankrupt, from the bankruptcy commencement date, shall (a) not act as a director of any company, or directly or indirectly take part in or be concerned in the promotion, formation or management of a company; (b) without the previous sanction of the bankruptcy trustee, be prohibited from creating any charge on his estate or taking any further debt; (c) be required to inform his business partners that he is undergoing a bankruptcy process; (d) prior to entering into any financial or commercial transaction of such value as may be prescribed, either individually or jointly, inform all the parties involved in such transaction that he is undergoing a bankruptcy process; (e) without the previous sanction of the Adjudicating Authority, be incompetent to maintain any legal action or proceedings in relation to the bankruptcy debts; and (f) not be permitted to travel overseas without the permission of the Adjudicating Authority. (2) Any restriction to which a bankrupt may be subject under this section shall cease to have effect, if— (a) the bankruptcy order against him is modified or recalled under section 142; or (b) he is discharged under section 138.

Title: Modification or recall of bankruptcy order.

Description: (1) The Adjudicating Authority may, on an application or suo motu, modify or recall a bankruptcy order, whether or not the bankrupt is discharged, if it appears to the Adjudicating Authority that— (a) there exists an error apparent on the face of such order; or (b) both the bankruptcy debts and the expenses of the bankruptcy have, after the making of the bankruptcy order, either been paid for or secured to the satisfaction of the Adjudicating Authority. (2) Where the Adjudicating Authority modifies or recalls the bankruptcy order under this section, any sale or other disposition of property, payment made or other things duly done by the bankruptcy trustee shall be valid except that the property of the bankrupt shall vest in such person as the Adjudicating Authority may appoint or, in default of any such appointment, revert to the bankrupt on such terms as the Adjudicating Authority may direct. (3) A copy of the order passed by the Adjudicating Authority under sub-section (1) shall be provided to the Board, for the purpose of recording an entry in the register referred to in section 191. (4) The modification or recall of the order by the Adjudicating Authority under sub-section (1) shall be binding on all creditors so far as it relates to any debts due to them which form a part of the bankruptcy.

Title: Standard of conduct.

Description: The bankruptcy trustee shall perform his functions and duties in compliance with the code of conduct provided under section 208.

Title: Fees of bankruptcy trustee.

Description: (1) A bankruptcy trustee appointed for conducting the bankruptcy process shall charge such fees as may be specified in proportion to the value of the estate of the bankrupt. (2) The fees for the conduct of the bankruptcy process shall be paid to the bankruptcy trustee from the distribution of the estate of the bankrupt in the manner provided in section 178.

Title: Replacement of bankruptcy trustee.

Description: (1) Where Committee of creditors is of the opinion that at any time during the bankruptcy process, a bankruptcy trustee appointed under section 125 is required to be replaced, it may replace him with another bankruptcy trustee in the manner provided under this section. (2) The Committee of creditors may, at a meeting, by a vote of seventy-five per cent. of voting share, propose to replace the bankruptcy trustee appointed under section 125 with another bankruptcy trustee. (3) The Committee of creditors may apply to the Adjudicating Authority for the replacement of the bankruptcy trustee. (4) The Adjudicating Authority shall within seven days of the receipt of the application under subsection (3) direct the Board to recommend for replacement of bankruptcy trustee. (5) The Board shall, within ten days of the direction of the Adjudicating Authority under sub-section (4), recommend a bankruptcy trustee for replacement against whom no disciplinary proceedings are pending. (6) The Adjudicating Authority shall, by an order, appoint the bankruptcy trustee as recommended by the Board under sub-section (5) within fourteen days of receiving such recommendation. (7) The earlier bankruptcy trustee shall deliver possession of the estate of the bankrupt to the bankruptcy trustee appointed under sub-section (6), on the date of his appointment. (8) The Adjudicating Authority may give directions to the earlier bankruptcy trustee— (a) to share all information with the new bankruptcy trustee in respect of the bankruptcy process; and (b) to co-operate with the new bankruptcy trustee in such matters as may be required. (9) The earlier bankruptcy trustee replaced under this section shall be released in accordance with the provisions of section 148. (10) The bankruptcy trustee appointed under this section shall give a notice of his appointment to the bankrupt within seven days of his appointment.