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

Meridian Textiles Ltd is in CIRP. The resolution professional learns that it owns a warehouse in a country with which India has made no reciprocal arrangement under Section 234. He wants evidence about that warehouse. What is the legal position under Section 235?

Section 235 does not apply. It operates only when the assets lie in a country with which reciprocal arrangements have been made under Section 234. Without such an arrangement, the resolution professional cannot use the letter of request mechanism.

  1. AHe may apply to the Adjudicating Authority, which must then issue a letter of request
  2. BHe may apply to the Adjudicating Authority, which may issue a letter of request to a foreign court
  3. CSection 235 does not apply because it requires assets to be situated in a country with which reciprocal arrangements have been made under Section 234Correct
  4. DHe may directly send a letter of request to the foreign court without approval

Explanation

Section 235(1) applies only where assets are in a country outside India with which reciprocal arrangements have been made under Section 234. No such arrangement exists here, so the route is unavailable. Option B overlooks this condition, and the letter of request is never issued directly by the RP.

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