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

In liquidation of Kaveri Steels Ltd, the liquidator believes assets lie in a country with which reciprocal arrangements exist under Section 234. What must the liquidator do to obtain evidence or action relating to those assets?

The liquidator must apply to the Adjudicating Authority stating that evidence or action relating to the foreign assets is required in the liquidation. Only the Adjudicating Authority can issue the letter of request, so the liquidator cannot send it himself.

  1. AIssue a letter of request himself to the foreign court
  2. BRequest the Insolvency and Bankruptcy Board to issue the letter of request
  3. CSeek approval of the Central Government before contacting the foreign authority
  4. DMake an application to the Adjudicating Authority stating that evidence or action relating to the assets is requiredCorrect

Explanation

Under Section 235(1) the liquidator, if of the opinion that assets are in such a country, makes an application to the Adjudicating Authority. Only the Adjudicating Authority, if satisfied, may issue the letter of request under Section 235(2). The liquidator therefore cannot issue it himself.

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