# The Insolvency and Bankruptcy Code, 2016, Section 161: Notice to disclaim onerous property

- Act: The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016)
- Ministry: Ministry of Corporate Affairs
- Source URL: https://indiacode.ecourtsindia.com/insolvency-bankruptcy-code-2016/section/161/

## Text

(1) No notice of disclaimer under section 160 shall be necessary if— (a) a person interested in the onerous property has applied in writing to the bankruptcy trustee or his predecessor requiring him to decide whether the onerous property should be disclaimed or not; and (b) a decision under clause (a) has not been taken by the bankruptcy trustee within seven days of receipt of the notice. (2) Any onerous property which cannot be disclaimed under sub-section (1) shall be deemed to be part of the estate of the bankrupt. Explanation.—For the purposes of this section, an onerous property is said to be disclaimed where notice in relation to that property has been given by the bankruptcy trustee under section 160.

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