# The Insolvency and Bankruptcy Code, 2016, Section 168: Obligations under contracts

- 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/168/

## Text

(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.

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