IBC-SECTION 35 TO SECTION 37

Section 35 Powers and duties of Liquidator

INSOLVENCY AND BANKRUPTCY CODE, SECTION 35 POWERS AND DUTIES OF LIQUIDATOR

The liquidator shall have the following powers and duties, namely:- 

1. To verify the claims of all the creditors.
2. To take into custody & control all the assets, property, effects, and actionable claims of the corporate debtor.
3. To evaluate the assets and property of the corporate debtor.
4. To take such measures to protect & preserve the assets and properties of the corporate debtor.
5. To carry on the business of the corporate debtor for its beneficial liquidation.
6. Sell the immovable and movable property and actionable claims of the corporate debtor in liquidation by the Public auction.
7. To draw, accept, make, and endorse any negotiable instruments.
8. To obtain any professional assistance from any person.
9. To invite and settle claims of creditors and claimants and distribute proceeds in accordance with the provisions of this code.
10. To investigate the financial affairs of the corporate debtor to determine undervalued or preferential transactions.

SECTION 35 CHART

Section 36 liquidation estate

INSOLVENCY AND BANKRUPTCY CODE, SECTION 36 LIQUIDATION ESTATE

The liquidator shall hold liquidation estate as a fiduciary for the benefit of all the creditors.

All liquidation estate assets which shall include the following:- 

1. All the assets of the corporate debtor have ownership rights, including all rights and interests therein as evidenced in the balance sheet of the corporate debtor then the liquidator shall hold this assets as a liquidation estate.
2. If the assets that may or may not be in possession of the corporate debtor including but not limited to encumbered assets then the liquidator shall hold assets as a liquidation estate.
3. Tangible assets whether assets it's movable or immovable.
4. Intangible assets include but not limited to intellectual property, securities (including shares held in a subsidiary of the corporate debtor) and financial instruments, insurance policies, contractual rights.
5. Assets of the corporate debtor subject to the determination of ownership by the court.
6. Any assets of the corporate debtors in respect of which a secured creditor has relinquished security interest.
7. Any other property belonging to the corporate debtor at the insolvency commencement date.
8. All proceeds of liquidation as and when they are realized.

SECTION 36 (i) CHART

The following shall not be included in the liquidation estate assets and shall not corporate debtor.

1. Assets owned by a third party which is in the possession of the corporate debtor then such assets shall not be included as a liquidation estate of the corporate debtor.
2. Assets in security collateral held by the financial services providers.
3. Personal assets of any shareholder/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.
4. Any assets of any Indian or subsidiary of the corporate debtor.
5. Any other assets as may be specified by the board.

SECTION 36 (ii) CHART

Section 37 Consolidation of claims, Verification of claims, Admission or Rejection claims, Determination of valuation of claims, Appeal against the decision of liquidator.

INSOLVENCY AND BANKRUPTCY CODE, SECTION 37 CONSOLIDATION OF CLAIMS, VERIFICATION /ADMISSION/REJECTIONS OF CLAIMS, DETERMINATION OF VALUATION OF CLAIMS, APPEAL AGAINST THE DECISION OF LIQUIDATOR.

Combine effect of all the above section:- Liquidator to collect claims in 30 days, then verifications of all claims are done, the liquidator may accept or reject claims.

Note:- creditor has 14 days to alter claims amount after submission also they have the right to appeal to NCLT.