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CS Professional · Corporate Restructuring, Valuation and Insolvency · Role, Functions and Duties of IP, IRP and RP

Bankrupt Mr. Iyer has been discharged under section 138. Afterwards he receives a legacy of property and his salary increases. Which statement correctly describes his continuing obligations to the bankruptcy trustee?

After discharge, Mr. Iyer continues to owe the trustee the duties of giving information, attending when required and other prescribed things, but not the duty to notify acquisition or devolution of property or an increase in income, which ends on discharge.

  1. AHe must continue all duties under section 150(1), including notices of property and income events
  2. BHe is released from all duties on discharge
  3. CHe must continue the duties other than the duty to give notice of acquisition, devolution or increase in incomeCorrect
  4. DHe must continue only the duty to attend on the trustee, and the information duty ends

Explanation

Section 150(3) says the bankrupt continues to discharge the duties under sub-section (1) other than those under clause (c) even after discharge. Clause (c) covers notice of acquisition, devolution and income increase, so those notices are no longer required. Information, attendance and other prescribed duties continue.

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