Restrictions on bankrupt
Section 141 of the Insolvency and Bankruptcy Code, 2016 deals with restrictions on bankrupt. 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; The Act was enacted on 28 May 2016.
(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.
Section 141, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Questions about Section 141
What does Section 141 of the Insolvency and Bankruptcy Code deal with?
Section 141 of the Insolvency and Bankruptcy Code is headed "Restrictions on bankrupt". 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;
How do I find court cases under Section 141 of the Insolvency and Bankruptcy Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Insolvency and Bankruptcy Code 141, section 141 Insolvency and Bankruptcy Code, section 141 of the Insolvency and Bankruptcy Code. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 141 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 138 (Discharge order), section 142 (Modification or recall of bankruptcy order), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it.
When was Section 141 of the Insolvency and Bankruptcy Code enacted?
Section 141 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 141, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
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Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.