Liquidation asset sales face a new eligibility bar, as ineligible resolution applicants cannot buy corporate debtor property or claims.

A proviso inserted in section 35(1)(f) of the Insolvency and Bankruptcy Code restricts liquidation sales by prohibiting the liquidator from selling the corporate debtor's immovable property, movable property, or actionable claims to any person who is not eligible to be a resolution applicant. The amendment ties eligible purchasers in liquidation to the resolution applicant eligibility framework and imposes a transfer restriction on liquidation assets.

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