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Informative

Corporate Debtor has absolute rights over property forming part of the liquidation estate: NCLAT

Update / Judgement Date

20 Jan 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLAT ruled that the corporate debtor retains absolute rights over the property that forms part of the liquidation estate. In the case at hand, the NCLAT reaffirmed that assets and property of the corporate debtor are under the control of the liquidator, but the debtor still holds rights over them during the liquidation process. The decision clarifies the rights of corporate debtors and creditors in the liquidation process, ensuring that the liquidation process is carried out in an orderly and transparent manner.