IBC 170 — Administration of estate of deceased bankrupt

Insolvency & Bankruptcy Code, 2016

Statutory text

(1) All the provisions of Chapter V relating to the administration and distribution of the estate of the bankrupt shall, so far as the same are applicable, apply to the administration of the estate of a deceased bankrupt.
(2) While administering the estate of a deceased bankrupt, the bankruptcy trustee shall have regard to the  claims  by  the  legal  representatives  of  the  deceased  bankrupt  to  payment  of  the  proper  funeral  and testamentary expenses incurred by them.
(3)  The  claims  under  sub-section  (2)  shall  rank  equally  to  the  secured  creditors  in  the  priority provided under section 178.
(4) If, on the administration of the estate of a deceased bankrupt, any surplus remains in the hands of the bankruptcy trustee after payment in full of all the debts due from the deceased bankrupt, together with the costs of the administration and interest as provided under section 178, such surplus shall be paid to the legal  representatives  of  the  estate  of  the  deceased  bankrupt  or  dealt  with  in such  manner  as  may  be prescribed.

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