Question

    Which is correct statement with respect to Liquidation

    Estate?
    A Liquidator forms the liquidation estate Correct Answer Incorrect Answer
    B Liquidator holds the liquidation estate as a fiduciary for the benefit of all the creditors Correct Answer Incorrect Answer
    C Liquidation estate consists of the assets owned by a third party which are in possession of the corporate debtor Correct Answer Incorrect Answer
    D Both (a) & (b) Correct Answer Incorrect Answer

    Solution

    Section 36-Liquidation estate- (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.

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