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CS Professional · Insolvency and Bankruptcy - Law and Practice · Introduction to Insolvency and Bankruptcy Code

During the liquidation of Kaveri Steels Ltd, the liquidator learns that the company owns a warehouse in a foreign country with which India has made reciprocal arrangements under the Code. Evidence about the warehouse is needed. What is the correct route?

The liquidator should apply to the Adjudicating Authority stating that evidence or action about the foreign assets is required. If satisfied, the Authority may issue a letter of request to a competent court or authority in that reciprocating country; the liquidator cannot write directly.

  1. AThe liquidator directly writes to the foreign court
  2. BThe liquidator applies to the Adjudicating Authority, which, if satisfied, may issue a letter of request to a competent court or authority of that countryCorrect
  3. CThe Central Government must first appoint an administrator for the asset
  4. DThe creditors' committee issues the letter of request

Explanation

Where assets lie in a reciprocating country, the liquidator may apply to the Adjudicating Authority stating that evidence or action is required. If satisfied, the Authority may issue a letter of request. The liquidator cannot approach the foreign court directly.

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