Punishment for certain actions
Section 187 of the Insolvency and Bankruptcy Code, 2016 deals with punishment for certain actions. If a bankruptcy trustee,— (a) has fraudulently misapplied, retained or accounted for any money or property comprised in the estate of the bankrupt; The Act was enacted on 28 May 2016.
If a bankruptcy trustee,—
(a) has fraudulently misapplied, retained or accounted for any money or property comprised in the estate of the bankrupt; or
(b) has wilfully acted in a manner that the estate of the bankrupt has suffered any loss in consequence of breach of any duty of the bankruptcy trustee in carrying out his functions under section 149,
he shall be punishable with imprisonment for a term which may extend to three years, or with fine, which shall not be less than three times the amount of the loss caused, or likely to have been caused, to persons concerned on account of such contravention, or with both:
Provided that where such loss or unlawful gain is not quantifiable, the total amount of fine imposed shall not exceed five lakh rupees:
Provided further that the bankruptcy trustee shall not be liable under this section if he seizes or disposes of any property which is not comprised in the estate of the bankrupt and at that time had reasonable grounds to believe that he is entitled to seize or dispose that property.
Section 187, 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
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Questions about Section 187
What does Section 187 of the Insolvency and Bankruptcy Code deal with?
Section 187 of the Insolvency and Bankruptcy Code is headed "Punishment for certain actions". If a bankruptcy trustee,— (a) has fraudulently misapplied, retained or accounted for any money or property comprised in the estate of the bankrupt;
How do I find court cases under Section 187 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 187, section 187 Insolvency and Bankruptcy Code, section 187 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 187 of the Insolvency and Bankruptcy Code, and has it changed?
Its own text turns on section 149 (Functions of bankruptcy trustee), so none of them can safely be read on its own. The rules and notifications made under it are where it actually bites, and there is one: most recently Notification of provisions under the Insolvency and Bankruptcy Code, 2016 relating to Personal Guarantors to Corporate Debtor (dated 15.11.2019) (2019).
When was Section 187 of the Insolvency and Bankruptcy Code enacted?
Section 187 of the Insolvency and Bankruptcy Code, cited as Insolvency and Bankruptcy Code 187, was enacted on 28 May 2016 as Act 31 of 2016. It is in force as at the date shown on this page.
Other sections of this Act
- 240. Power to make regulations2349 words
- 5. Definitions2326 words
- 3. Definitions1381 words
- 29A. Person not eligible to be resolution applicant1152 words
- 239. Power to make rules963 words
- 196. Powers and functions of Board942 words
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 17 Oct 2026. This page is not a substitute for legal advice.