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

Bharat Metals Ltd is in liquidation. The liquidator, Ms. Nair, finds that some assets of the company are in a country with which India has NOT made any reciprocal arrangement under section 234. Which statement is correct about using the letter of request route in section 235?

The letter of request route under section 235 is available only where the assets are in a country with which India has made reciprocal arrangements under section 234. It covers liquidators too, but the absence of a reciprocal arrangement means the route cannot be used.

  1. AShe may still apply, because section 235 covers any country
  2. BThe route applies only to assets in a country with which reciprocal arrangements have been made under section 234Correct
  3. CThe route applies only during CIRP and not during liquidation
  4. DThe route is available only to a bankruptcy trustee

Explanation

Section 235(1) is tied to assets situated in a country with which reciprocal arrangements have been made under section 234. It also expressly covers liquidation, and it names the resolution professional, liquidator or bankruptcy trustee. Without a reciprocal arrangement the section 235 route is not available.

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