The Insolvency and Bankruptcy Code, 2016
Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms
Administration and Distribution of The Estate of the Bankrupt
Section 168: Obligations under contracts:
*168. (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.
Notifications & Circulars
*Only in so far as they relate to personal guarantors to corporate debtors, shall come into force w.e.f. 01.12.2019.