Obligations under contracts
Section 168 of the Insolvency and Bankruptcy Code, 2016 deals with obligations under contracts. This section shall apply where a contract has been entered into by the bankrupt with a person before the bankruptcy commencement date. The Act was enacted on 28 May 2016.
(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.
Section 168, The Insolvency and Bankruptcy Code, 2016 (Act 31 of 2016).
Questions about Section 168
What does Section 168 of the Insolvency and Bankruptcy Code deal with?
Section 168 of the Insolvency and Bankruptcy Code is headed "Obligations under contracts". This section shall apply where a contract has been entered into by the bankrupt with a person before the bankruptcy commencement date.
How do I find court cases under Section 168 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 168, section 168 Insolvency and Bankruptcy Code, section 168 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.
When was Section 168 of the Insolvency and Bankruptcy Code enacted?
Section 168 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 168, 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 20 Oct 2026. This page is not a substitute for legal advice.