(1) For the purposes of liquidation, the liquidator shall form an estate of the assets mentioned in sub-section (3), which will be called the liquidation estate in relation to the corporate debtor.

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

(3) Subject to sub-section (4), the liquidation estate shall comprise all assets of the corporate debtor including, but not limited to—

1. any assets over which the corporate debtor has ownership rights, including all rights and interests therein as evidenced in the balance sheet of the corporate debtor or the records in the information utility or the depository of securities or any other registry that records the ownership of assets;
2. assets that may or may not be in possession of the corporate debtor including but not limited to encumbered assets;
3. tangible assets, whether movable or immovable;
4. intangible assets including but not limited to intellectual property, securities (including shares held in any subsidiary of the corporate debtor) and financial instruments, insurance policies, contractual rights;
5. any assets or their value recovered through proceedings for avoidance of transactions;
6. any asset of the corporate debtor in respect of which a secured creditor has relinquished security interest;
7. any other property belonging to or vested in the corporate debtor at the liquidation commencement date; and
8. all proceeds of liquidation as and when they are realised.

(4) The following shall not be included in the liquidation estate assets and shall not be used for recovery or realisation by the liquidator:—

1. assets owned by a third party which are in possession of the corporate debtor, including—
   1. assets held in trust for any third party;
   2. bailment contracts;
   3. all sums due to any workman or employee from the provident fund, the pension fund and the gratuity fund;
   4. such other assets as may be notified by the Central Government in consultation with any financial sector regulator;
2. assets of any Indian or foreign subsidiary of the corporate debtor; or
3. any other assets as may be specified by the Board, including assets of any persons other than the corporate debtor.