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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

A liquidator of Narmada Metals Ltd believes that some assets are in Country X. India has no reciprocal arrangement with Country X under section 234. Which statement best reflects section 235?

Section 235 allows a letter of request only where the assets lie in a country with which India has made reciprocal arrangements under section 234. Without such an arrangement, the liquidator cannot use this route, even though liquidation proceedings are covered by the section.

  1. AThe letter of request route in section 235 is available only for assets in a country with which reciprocal arrangements have been made under section 234Correct
  2. BThe Adjudicating Authority may issue a letter of request to any country regardless of reciprocal arrangements
  3. CThe letter of request route is available only during the resolution process, not liquidation
  4. DThe letter of request route applies only to assets of personal guarantors

Explanation

Section 235(1) ties the application to assets situated in a country with which reciprocal arrangements have been made under section 234. It applies to resolution, liquidation or bankruptcy proceedings, so the liquidation and any-country options are wrong. Guarantors are only one covered category.

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