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CS Professional · Corporate Restructuring, Valuation and Insolvency · Cross Border Insolvency

Kaveri Power Ltd has assets in Country X, which has no reciprocal arrangement with India under section 234. The liquidator wants a letter of request to a Country X court for evidence about these assets. Applying section 235 as worded, what is the position?

The liquidator cannot use section 235 here. The provision applies only to assets located in a country with which India has made reciprocal arrangements under section 234. Without that arrangement the condition fails, even though the section covers liquidation proceedings too.

  1. AThe section applies only where the assets are in a country with which reciprocal arrangements have been made under section 234, so the condition is not metCorrect
  2. BThe Adjudicating Authority may issue the letter of request because the section applies notwithstanding any other law
  3. CThe liquidator may issue the letter himself once the Adjudicating Authority is informed
  4. DThe section applies only during CIRP and not during liquidation, so it is unavailable

Explanation

Section 235(1) is triggered when assets are in a country with which reciprocal arrangements exist under section 234. The 'notwithstanding' clause overrides other laws but does not remove that condition. The section expressly covers liquidation and bankruptcy as well as insolvency resolution, so the last option is wrong.

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