Vol 18 (2021) - Issue 5

Article preview

Ambiguous Assets in CIRP: A Need for Re-classification of Assets under the Insolvency and Bankruptcy Code, 2016

Synopsis
The intent of the Insolvency and Bankruptcy Code, 2016 is to maximise the value of the corporate debtors’ assets during the resolution process. This responsibility is undertaken by the Resolution Professional ("RP") who takes control over the assets after the initiation of Corporate Insolvency Resolution Process. Assets in this case are the assets whose title belongs to the corporate debtor. This ensures that all the assets of the corporate debtor are valued and also maximised. However, there exists certain situations wherein it is unclear as to whether the corporate debtor has title over those assets or not. This has been due to diversification of businesses entering into insolvency in the past few years.
Therefore, in this article we try to analyse the status of such assets mainly "sovereign assets" and ‘personal data as an asset’ both in Indian and foreign context and suggest possible ways of clearing out the existing ambiguity with respect to the aforementioned assets.