CS Professional · Insolvency and Bankruptcy - Law and Practice · Cross Border Insolvency (Elective 7.5)
Sunrise Textiles Ltd, an Indian corporate debtor in CIRP, owns a warehouse in a country with which India has made reciprocal arrangements under section 234. The resolution professional, Mr. Iyer, believes evidence about this asset is needed for the process. Under the Code as it stands today, what should he do?
He must apply to the Adjudicating Authority. If it is satisfied that evidence or action on the foreign asset is needed, it may issue a letter of request to the competent court or authority of the reciprocating country. The RP has no power to issue it himself.
- AApply to the Adjudicating Authority, which, if satisfied, may issue a letter of request to a court or authority of that countryCorrect
- BDirectly send a letter of request to the foreign court without any approval
- CSeek approval from the Insolvency and Bankruptcy Board of India to issue the letter of request
- DAsk the committee of creditors to issue a letter of request by a 66 per cent vote
Explanation
Section 235 lets the resolution professional apply to the Adjudicating Authority where assets lie in a country with reciprocal arrangements under section 234. The Adjudicating Authority, on being satisfied that evidence or action is required, may issue the letter of request. The RP cannot issue it directly, and neither the Board nor the CoC has this power.
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