#asset exclusion

The NCLAT held that under Section 154 IBC a bankrupt's estate vests in the trustee immediately, making post-bankruptcy withdrawals unauthorized even if claimed as excluded assets exceeding statutory limits, and affecting personal guarantors and debtors.

NCLAT rules that assets under unlawful possession of a corporate debtor, even after a Supreme Court-affirmed eviction decree, cannot form part of the Corporate Insolvency Resolution Process (CIRP). The ruling reinforces that legal ownership, not physical possession, determines asset inclusion under the IBC, impacting insolvency proceedings where disputed assets are involved.