Section 36 of IBC : Section 36: Liquidation Estate

IBC

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Explanation using Example

Imagine a company, XYZ Pvt. Ltd., has been declared insolvent and is undergoing liquidation. The liquidator appointed for XYZ Pvt. Ltd. is tasked with forming a liquidation estate as per Section 36 of the Insolvency and Bankruptcy Code, 2016.

In this case, the liquidator identifies the following assets for the liquidation estate:

  • The company's factory land and building (tangible immovable asset).
  • Patents and trademarks held by the company (intangible assets).
  • Investments in shares of its subsidiary company (financial instruments).
  • Vehicles and machinery owned by the company (...

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