Section 36(4) in Insolvency And Bankruptcy Code, 2016
(4)The following shall not be included in the liquidation estate assets and shall not be used for recovery in the liquidation:-(a)assets owned by a third party which are in possession of the corporate debtor, including-(i)assets held in trust for any third party;(ii)bailment contracts;(iii)all sums due to any workman or employee from the provident fund, the pension fund and the gratuity fund;(iv)other contractual arrangements which do not stipulate transfer of title but only use of the assets; and(v)such other assets as may be notified by the Central Government in consultation with any financial sector regulator;(b)assets in security collateral held by financial services providers and are subject to netting and set-off in multi-lateral trading or clearing transactions;(c)personal assets of any shareholder or partner of a corporate debtor as the case may be provided such assets are not held on account of avoidance transactions that may be avoided under this Chapter;(d)assets of any Indian or foreign subsidiary of the corporate debtor; or(e)any other assets as may be specified by the Board, including assets which could be subject to set-off on account of mutual dealings between the corporate debtor and any creditor.
