Skip to content

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

In the CIRP of Kaveri Agro Ltd, the resolution professional forms the opinion that the assets of the personal guarantor of the corporate debtor are located in a reciprocal-arrangement country abroad. Can the resolution professional invoke section 235 regarding these assets?

Yes. Section 235(1) expressly covers assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor. The resolution professional can apply to the Adjudicating Authority during the insolvency resolution process itself, without waiting for liquidation.

  1. ANo, the section covers only assets of the corporate debtor
  2. BNo, personal guarantors are dealt with only by the Board
  3. CYes, but only after the liquidation order is passed
  4. DYes, the section extends to assets of a personal guarantor of a corporate debtorCorrect

Explanation

Section 235(1) refers to assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor. So the resolution professional may apply to the Adjudicating Authority during the insolvency resolution process itself, not only after liquidation.

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