Section 168 in The Insolvency and Bankruptcy Code, 2016

Title: Obligations under contracts.

Description: (1) This section shall apply where a contract has been entered into by the bankrupt with a person before the bankruptcy commencement date. (2) Any party to a contract, other than the bankrupt under sub-section (1), may apply to the Adjudicating Authority for— (a) an order discharging the obligations of the applicant or the bankrupt under the contract; and (b) payment of damages by the party or the bankrupt, for non-performance of the contract or otherwise. (3) Any damages payable by the bankrupt by virtue of an order under clause (b) of sub-section (2) shall be provable as bankruptcy debt. (4) When a bankrupt is a party to the contract under this section jointly with another person, that person may sue or be sued in respect of the contract without joinder of the bankrupt.

Title: Continuance of proceedings on death of bankrupt.

Description: If a bankrupt dies, the bankruptcy proceedings shall, continue as if he were alive.

Title: Administration of estate of deceased bankrupt.

Description: (1) All the provisions of Chapter V relating to the administration and distribution of the estate of the bankrupt shall, so far as the same are applicable, apply to the administration of the estate of a deceased bankrupt. (2) While administering the estate of a deceased bankrupt, the bankruptcy trustee shall have regard to the claims by the legal representatives of the deceased bankrupt to payment of the proper funeral and testamentary expenses incurred by them. (3) The claims under sub-section (2) shall rank equally to the secured creditors in the priority provided under section 178. (4) If, on the administration of the estate of a deceased bankrupt, any surplus remains in the hands of the bankruptcy trustee after payment in full of all the debts due from the deceased bankrupt, together with the costs of the administration and interest as provided under section 178, such surplus shall be paid to the legal representatives of the estate of the deceased bankrupt or dealt with in such manner as may be prescribed.

Title: Proof of debt.

Description: (1) The bankruptcy trustee shall give notice to each of the creditors to submit proof of debt within fourteen days of preparing the list of creditors under section 132. (2) The proof of debt shall— (a) require the creditor to give full particulars of debt, including the date on which the debt was contracted and the value at which that person assesses it; (b) require the creditor to give full particulars of the security, including the date on which the security was given and the value at which that person assesses it; (c) be in such form and manner as may be prescribed. (3) In case the creditor is a decree holder against the bankrupt, a copy of the decree shall be a valid proof of debt. (4) Where a debt bears interest, that interest shall be provable as part of the debt except in so far as it is owed in respect of any period after the bankruptcy commencement date (5) The bankruptcy trustee shall estimate the value of any bankruptcy debt which does not have a specific value. (6) The value assigned by the bankruptcy trustee under sub-section (5) shall be the amount provable by the concerned creditor. (7) A creditor may prove for a debt where payment would have become due at a date later than the bankruptcy commencement date as if it were owed presently and may receive dividends in a manner as may be prescribed. (8) Where the bankruptcy trustee serves a notice under sub-section (1) and the person on whom the notice is served does not file a proof of security within thirty days after the date of service of the notice, the bankruptcy trustee may, with leave of the Adjudicating Authority, sell or dispose of any property that was subject to the security, free of that security.

Title: Proof of debt by secured creditors.

Description: (1) Where a secured creditor realises his security, he may produce proof of the balance due to him. (2) Where a secured creditor surrenders his security to the bankruptcy trustee for the general benefit of the creditors, he may produce proof of his whole claim.

PART 3 INSOLVENCY RESOLUTION AND BANKRUPTCY FOR INDIVIDUALS AND PARTNERSHIP FIRMS CHAPTER 5 ADMINISTRATION AND DISTRIBUTION OF THE ESTATE OF BANKRUPT