Assets of subsidiary of the Corporate Debtor are not included in the liquidation Estate- The Assistant Provident Fund Commissioner & Recovery Officer Employees Provident Fund Organization vs Florind Shoes Pvt. Ltd. (CD) & Ors.-NCLAT

NCLAT has held that as in terms of provisions of Section 36(4)(d) of the Code assets of its subsidiary did not fall within the ambit of liquidation Estate. Learned counsel for the Appellant vehemently tried to stress that under sub-Section 3(a) of section 36 of the Code assets over which the Corporate Debtor has ownership right including all rights and interests herein as evidenced in the balance sheet of the Corporate Debtor or an information utility etc. comprise the liquidation Estate of Corporate Debtor. However, the provision itself has been subjected to the exclusion clause engrafted in sub-Section 4 and assets of subsidiary of the Corporate Debtor are not included in the liquidation Estate.

Assets of subsidiary of the Corporate Debtor are not included in the liquidation Estate- The Assistant Provident Fund Commissioner & Recovery Officer Employees Provident Fund Organization vs Florind Shoes Pvt. Ltd. (CD) & Ors.-NCLAT Read Post »