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All Assets Reflected In Balance Sheet Of Corporate Debtor Form Part Of Liquidation Estate U/S 36 Of IBC: NCLAT

Update / Judgement Date

04 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLAT held that all assets reflected in the balance sheet of a corporate debtor form part of the liquidation estate under Section 36 of the IBC. This clarifies the scope of assets available for distribution during liquidation. The ruling ensures that all recorded assets are considered part of the liquidation process. This provides greater clarity for liquidators and creditors regarding the assets available to satisfy claims. It reinforces the comprehensive nature of the liquidation estate under the IBC.