A Director of a Private Limited Company, which is already in Corporate Insolvency Resolution Process has approached you to file an application for Bankruptcy for himself. Explain him the present status of applicability o

Presently Insolvency and Bankruptcy Code, 2016 is applicable for Companies incorporated under the Companies Act, 2013 and Limited Liability Partnerships incorporated under LLP Act. Chapter IV of Part III of the Insolvency and Bankruptcy Code, 2016 (the Code) deals with the provisions of bankruptcy order for individuals and partnership firms. The provisions related to insolvency resolution of individual and partnership firm have been notified under the Code. Section 141 of the Insolvency and Bankruptcy Code, 2016 provides that a bankrupt from the bankruptcy commencement date shall: not act as a director of any company, or directly or indirectly take part in or be concerned in the promotion, formation or management of a company: without the previous sanction of the bankruptcy trustee, be prohibited from creating any charge on his estate or taking any further debt: be required to inform his business partners that he is undergoing a bankruptcy process; prior to entering into any financial or commercial transaction of such value as may be prescribed, either individually or jointly, inform all the parties involved in such transaction that he is undergoing a bankruptcy process: without the previous sanction of the Adjudicating Authority, be incompetent to maintain any legal action or proceedings in relation to the bankruptcy debts, and not be permitted to travel overseas without the permission of the Adjudicating Authority Any restriction to which a bankrupt may be subject under this Section shall cease to have effect if the bankruptcy order against him is modified or recalled under Section 142 of the Insolvency and Bankruptcy Code, 2016 or he is discharged under Section 138 of the Insolvency and Bankruptcy Code, 2016.