A steel manufacturing company owns blast furnaces, rolling mills, and heavy machinery worth ₹ 50 crores, all of which are registered in the company's name and fully paid for.
CS Professional · Insolvency and Bankruptcy - Law and Practice · PYQS · June 2026
A steel manufacturing company owns blast furnaces, rolling mills, and heavy machinery worth ₹ 50 crores, all of which are registered in the company's name and fully paid for.
Answer & Explanation:
When the company goes into liquidation, the liquidator can sell all such plant and machinery owned by the corporate debtor. The liquidation estate shall comprise all assets over which the corporate debtor has ownership rights, including assets that may or may not be in possession of the corporate debtor [Section 36(3) of IBC].
Topics: Insolvency and Bankruptcy Code, 2016
Related Questions in this Topic
- "A resolution application may submit a resolution plan along with an affidavit stating that he is eligible under section...
- Omega Infotech Private Limited, a corporate debtor, filed an application under Section 10 of the Insolvency and Bankrupt...
- A public sector bank, acting as a financial creditor, filed an application under Section 7 of the Insolvency and Bankrup...
- PQR Manufacturing Limited, a company engaged in the production of industrial equipment, defaulted on its financial oblig...
- Explain briefly on "Actions to avoid acts detrimental to creditors."