Bankrupt Can File Application For Discharge After One Year, If Bankruptcy Trustee Fails To Do So: NCLAT New Delhi

The NCLAT (National Company Law Appellate Tribunal) has ruled that a bankrupt individual has the locus to file an application for discharge when the Bankruptcy Trustee fails to perform their statutory obligation of filing the application after one year. This significant decision under the IBC (Insolvency and Bankruptcy Code) provides recourse for a bankrupt person when the appointed trustee is delinquent. It ensures that the process of discharge, which allows a bankrupt to be freed from certain debts, is not held up by the trustee's inaction.