Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Cross Border Insolvency (Elective 7.5)

A liquidator of Meghdoot Steels Ltd believes assets of the corporate debtor are in Country X. India has made no reciprocal arrangement with Country X under section 234. He applies to the Adjudicating Authority for a letter of request. Which position follows from section 235?

The section 235 letter of request route is available only where the foreign country has reciprocal arrangements with India under section 234. Without such an arrangement, the liquidator cannot rely on this provision, even though liquidators are generally covered by it.

  1. AThe liquidator may send the request on his own authority since liquidation is under way
  2. BThe section 235 route is available only for assets in a country with which reciprocal arrangements have been made under section 234Correct
  3. CThe Adjudicating Authority must issue the letter because the liquidator holds the opinion
  4. DThe letter of request can be issued only during CIRP and never in liquidation

Explanation

Section 235(1) applies to assets situated in a country with which reciprocal arrangements have been made under section 234. Liquidators are covered, so the last option is wrong. The Authority acts only when satisfied, so it is not bound merely by the liquidator's opinion.

Did you get it right without looking?

One question tells you little. A timed set on Cross Border Insolvency (Elective 7.5) shows your real accuracy, how long you take and where you lose marks.

Practise Cross Border Insolvency (Elective 7.5)Free diagnostic mock

More Cross Border Insolvency (Elective 7.5) questions