A Bank has initiated insolvency proceedings against the personal guarantors of a Corporate Debtor, in the list of assets of a personal guarantor, one of the asset is 'pension plan' taken in the name of spouse of the pers

As per Section 79(14) of Insolvency & Bankruptcy Code, "excluded assets" includes – (a) unencumbered tools, books, vehicles and other equipment as are necessary to the debtor or bankrupt for his personal use or for the purpose of his employment, business or vocation, (b) unencumbered furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his immediate family; (c) any unencumbered personal ornaments of such value, as may be prescribed, of the debtor or his immediate family which cannot be parted with, in accordance with religious usage; (d) any unencumbered life insurance policy or pension plan taken in the name of debtor or his immediate family; and (e) an unencumbered single dwelling unit owned by the debtor of such value as may be prescribed; As per aforesaid provisions of the Insolvency & Bankruptcy Code the pension plan in the name of spouse, who is the immediate family of the personal guarantor falls within the list of excluded assets and hence, the same cannot be included in the list of assets of the personal guarantor.