The liquidator is equipped with the powers to take possession of assets of the Corporate Debtor under liquidation forming part of liquidation estate yet some Assets need to be excluded”. Elucidate.

Section 36 (3) of the Insolvency and Bankruptcy Code, 2016 (IBC) specifies the assets of the Corporate Debtor that should be taken into custody as Liquidation Estate. In a similar way, Section 36 (4) of IBC illustrates the following assets which shall not be included in the liquidation estate assets and shall not be used for recovery in the liquidation assets owned by a third party which are in possession of the corporate debtor, including- assets held in trust for any third party; bailment contracts; all sums due to any workmen or employee from the provident fund, the pension fund and the gratuity fund; other contractual arrangements which do not stipulate transfer of title but only use of the assets; and such other assets as may be notified by the Central Government in consultation with any financial sector regulator. assets in security collateral held by financial services providers and are subject to netting and set-off in multi-lateral trading or clearing transactions; personal assets of any shareholder or 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; assets of any Indian or foreign subsidiary of the corporate debtor; or any other assets as may be specified by the Board, including assets which could be subject to set-off on account of mutual dealings between the corporate debtor and any creditor.