Liquidation estate defines which corporate assets may be realised and distributed under insolvency law, excluding third party and employee fund assets. Section 36 requires the liquidator to form a liquidation estate of specified assets of the corporate debtor and hold it as a fiduciary for creditors. The estate comprises owned tangible and intangible assets, encumbered assets, assets not in possession, proceeds, assets recovered by avoidance actions, and assets where secured creditors have relinquished security. Section 36(4) excludes third party assets in the debtor's possession (trusts, bailments), employee provident/pension/gratuity sums, subsidiary assets, and assets subject to netting or set off; excluded assets cannot be realised or distributed from the liquidation estate.
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.
Liquidation estate defines which corporate assets may be realised and distributed under insolvency law, excluding third party and employee fund assets.
Section 36 requires the liquidator to form a liquidation estate of specified assets of the corporate debtor and hold it as a fiduciary for creditors. The estate comprises owned tangible and intangible assets, encumbered assets, assets not in possession, proceeds, assets recovered by avoidance actions, and assets where secured creditors have relinquished security. Section 36(4) excludes third party assets in the debtor's possession (trusts, bailments), employee provident/pension/gratuity sums, subsidiary assets, and assets subject to netting or set off; excluded assets cannot be realised or distributed from the liquidation estate.
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