מגילה כ״ו ב:ט״ז
And Rava said: A Torah scroll that became worn out is interred and buried next to a Torah scholar, and in this regard, a Torah scholar is defined even as one who only studies the halakhot in the Mishna and the baraitot but is not proficient in their analysis. Rav Aḥa bar Ya’akov said: And when it is buried, it is first placed in an earthenware vessel, as it is stated: “And put them in an earthenware vessel, that they may last for many days” (Jeremiah 32:14).
משנה תורה, הלכות תפילין ומזוזה וספר תורה י׳:ג׳
A Torah scroll that has become worn or disqualified should be placed in an earthenware container and buried next to a Torah sage. This is the manner in which it should be entombed.
The mantle of a scroll that has become worn should be used to make shrouds for a corpse that has no one to bury it. This is the manner in which it should be entombed.
The mantle of a scroll that has become worn should be used to make shrouds for a corpse that has no one to bury it. This is the manner in which it should be entombed.
שולחן ערוך, אורח חיים קנ״ד:ה׳
[Regarding] a Torah scroll that became worn out - we place into an earthenware vessel and bury it in the grave of a Torah scholar; even one who only studies the laws and has not served under [higher level] Torah scholars.
שולחן ערוך, יורה דעה רפ״ב:י׳
A Sefer Torah that wore out or became invalid- we place it in an earthenware container and bury it next to a wise sage, and this is its proper Geniza ("hiding away").