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

In the CIRP of Kaveri Exports Ltd, the RP, Mr. Desai, wishes to apply under section 235 for a letter of request about assets abroad. Who may validly issue the letter of request under that section?

The Adjudicating Authority issues the letter of request. The resolution professional, liquidator or bankruptcy trustee only makes the application. The Authority must be satisfied that evidence or action on the foreign assets is required for the process before it may issue the request to the foreign court.

  1. AThe resolution professional, after informing the committee of creditors
  2. BThe Adjudicating Authority, on being satisfied that evidence or action is requiredCorrect
  3. CThe Central Government through the Ministry of Law
  4. DThe Insolvency and Bankruptcy Board of India on the RP's request

Explanation

Under section 235(2), the Adjudicating Authority, on receiving the application and being satisfied that evidence or action relating to the assets is required, may issue a letter of request to a competent court or authority of the foreign country. The RP only applies; the issuing power rests with the Adjudicating Authority.

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