Disclaimer of onerous property under liquidation rules allows the liquidator to remove burdensome assets and contracts from the estate. The liquidation regulations allow the liquidator to disclaim onerous property or unprofitable contracts, including burdened land, shares or stocks, and other unsaleable property, after committee approval and application to the Adjudicating Authority within the prescribed period. The liquidator must not apply where a written inquiry from an interested person has gone unanswered for a month, and must give at least seven days' notice to interested persons before applying. On approval, disclaimer ends the corporate debtor's rights, interests and liabilities in the property or contract, and affected persons are treated as creditors for compensation or damages in liquidation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Disclaimer of onerous property under liquidation rules allows the liquidator to remove burdensome assets and contracts from the estate.
The liquidation regulations allow the liquidator to disclaim onerous property or unprofitable contracts, including burdened land, shares or stocks, and other unsaleable property, after committee approval and application to the Adjudicating Authority within the prescribed period. The liquidator must not apply where a written inquiry from an interested person has gone unanswered for a month, and must give at least seven days' notice to interested persons before applying. On approval, disclaimer ends the corporate debtor's rights, interests and liabilities in the property or contract, and affected persons are treated as creditors for compensation or damages in liquidation.
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