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

Meera, a personal guarantor of the corporate debtor Kaveri Infra Ltd, has property in a reciprocating country. The bankruptcy trustee in proceedings against her under the Code considers that evidence about that property is needed. Which statement is correct?

The trustee may apply to the Adjudicating Authority. Section 235 expressly extends to a debtor, including a personal guarantor of a corporate debtor, and to bankruptcy proceedings through the bankruptcy trustee. If satisfied, the Adjudicating Authority may issue a letter of request to the reciprocating country's competent court or authority.

  1. ASection 235 cannot apply because it covers only corporate debtors
  2. BThe trustee may apply to the Adjudicating Authority, since Section 235 covers a debtor including a personal guarantor of a corporate debtorCorrect
  3. CThe trustee may apply only after the corporate debtor's CIRP ends
  4. DThe trustee must apply to the High Court of the foreign country directly

Explanation

Section 235(1) refers to the corporate debtor or debtor, including a personal guarantor of a corporate debtor, and to bankruptcy proceedings through the bankruptcy trustee. The application goes to the Adjudicating Authority, which may issue a letter of request under Section 235(2) if satisfied. Option A ignores the express wording.

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