36. (1) For the purposes of liquidation, the liquidator shall form an
estate of the assets mentioned in sub-section (3), which will be called the
liquidation estate in relation to the corporate debtor.
(2) The liquidator shall hold the liquidation estate as a fiduciary for the
benefit of all the creditors.
(3) Subject to sub-section (4), the liquidation estate shall comprise all
liquidation estate assets which shall include the following:-
(a) any assets over which the corporate debtor has ownership rights,
including all rights and interests therein as evidenced in the balance sheet
of the corporate
debtor or an information utility or records in the registry or any
depository recording securities of the corporate debtor or by any other
means as may be specified by the Board, including shares held in any
subsidiary of the corporate debtor;
(b) assets that may or may not be in possession of the corporate debtor
including but not limited to encumbered assets;
(c) tangible assets, whether movable or immovable;
(d) intangible assets including but not limited to intellectual property,
securities (including shares held in a subsidiary of the corporate debtor)
and financial instruments, insurance policies, contractual rights;
(e) assets subject to the determination of ownership by the court or
authority;
(f) any assets or their value recovered through proceedings for avoidance of
transactions in accordance with this Chapter;
(g) any asset of the corporate debtor in respect of which a secured creditor
has relinquished security interest;
(h) any other property belonging to or vested in the corporate debtor at the
insolvency commencement date; and
(i) all proceeds of liquidation as and when they are realised.
(4) The following shall not be included in the liquidation estate assets and
shall not be used for recovery in the liquidation:-
(a) assets owned by a third party which are in possession of the corporate
debtor, including-
(i) assets held in trust for any third party;
(ii) bailment contracts;
(iii) all sums due to any workman or employee from the provident fund, the
pension fund and the gratuity fund;
(iv) other contractual arrangements which do not stipulate transfer of title
but only use of the assets; and
(v) such other assets as may be notified by the Central Government in
consultation with any financial sector regulator;
(b) assets in security collateral held by financial services providers and
are subject to netting and set-off in multi-lateral trading or clearing
transactions;
(c) personal assets of any shareholder or partner of a corporate debtor as
the case may be provided such assets are not held on account of avoidance
transactions
that may be avoided under this Chapter;
(d) assets of any Indian or foreign subsidiary of the corporate debtor; or
(e) any other assets as may be specified by the Board, including assets
which could be subject to set-off on account of mutual dealings between the
corporate debtor
and any creditor.