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CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy for Individuals and Partnership Firms

While preparing for the final meeting of creditors in the estate of Ms. Kavita Nair, the bankruptcy trustee has distributed almost all funds. Which statement correctly reflects the trustee's duty regarding the cost of the final meeting?

The bankruptcy trustee must retain enough money from the bankrupt's estate to pay for convening and conducting the final committee of creditors meeting. Section 137(4) places this on the estate, not on creditors, the trustee personally or the tribunal.

  1. AThe trustee must retain sufficient sums from the estate to meet the expenses of convening and conducting the meetingCorrect
  2. BThe trustee must recover the meeting expenses from the creditors individually after the meeting
  3. CThe trustee must bear the expenses personally as part of the fee
  4. DThe meeting expenses are met by the Debt Recovery Tribunal

Explanation

Section 137(4) directs the trustee to retain sufficient sums from the bankrupt's estate to meet the expenses of convening and conducting the meeting during the administration. The other options place the cost on creditors, the trustee personally or the tribunal, which the Code does not provide.

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