After-acquired property of bankrupt
Section 159 of the Insolvency and Bankruptcy Code, 2016 deals with after-acquired property of bankrupt. The bankruptcy trustee shall be entitled to claim for the estate of the bankrupt, any after-acquired property by giving a notice to the bankrupt. The Act was enacted on 28 May 2016.
(1) The bankruptcy trustee shall be entitled to claim for the estate of the bankrupt, any after-acquired property by giving a notice to the bankrupt.
(2) A notice under sub-section (1) shall not be served in respect of—
(a) excluded assets; or
(b) any property which is acquired by or devolves upon the bankrupt after a discharge order is passed under section 138.
(3) The notice under sub-section (2) shall be given within fifteen days from the day on which the acquisition or devolution of the after-acquired property comes to the knowledge of the bankruptcy trustee.
(4) For the purposes of sub-section (3)—
(a) anything which comes to the knowledge of the bankruptcy trustee shall be deemed to have come to the knowledge of the successor of the bankruptcy trustee at the same time; and
(b) anything which comes to the knowledge of a person before he is appointed as a bankruptcy trustee shall be deemed to have come to his knowledge on the date of his appointment as bankruptcy trustee.
(5) The bankruptcy trustee shall not be entitled, by virtue of this section, to claim from any person who has acquired any right over after-acquired property, in good faith, for value and without notice of the bankruptcy.
(6) A notice may be served after the expiry of the period under sub-section (3) only with the approval of the Adjudicating Authority.
Explanation.—For the purposes of this section, the term “after-acquired property” means any property which has been acquired by or has devolved upon the bankrupt after the bankruptcy commencement date.
Section 159, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Cross-references
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Questions about Section 159
What does Section 159 of the Insolvency and Bankruptcy Code deal with?
Section 159 of the Insolvency and Bankruptcy Code is headed "After-acquired property of bankrupt". The bankruptcy trustee shall be entitled to claim for the estate of the bankrupt, any after-acquired property by giving a notice to the bankrupt.
How do I find court cases under Section 159 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 159, section 159 Insolvency and Bankruptcy Code, section 159 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 159 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 138 (Discharge order), so none of them can safely be read on its own.
When was Section 159 of the Insolvency and Bankruptcy Code enacted?
Section 159 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 159, 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 19 Oct 2026. This page is not a substitute for legal advice.