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

The Central Government notifies that the Code's application to assets of a corporate debtor located in a reciprocating foreign country shall be subject to specified conditions. Under which provision is this power exercised, and what is its effect?

This is Section 234(2). By notification in the Official Gazette, the Central Government can direct that the Code's application to assets or property situated in a country with reciprocal arrangements is subject to specified conditions. Section 234(1) merely allows agreements with foreign governments.

  1. ASection 234(1); it permits the Government to rewrite the Code for foreign proceedings
  2. BSection 234(2); application of the Code to assets situated in that country is subject to the conditions specifiedCorrect
  3. CSection 235(2); it lets the Adjudicating Authority impose conditions on foreign courts
  4. DSection 15; it fixes conditions in the public announcement

Explanation

Section 234(2) lets the Central Government direct by Gazette notification that the Code's application to assets in a country with reciprocal arrangements is subject to specified conditions. Section 234(1) is only the power to enter into an agreement. Section 235 concerns letters of request.

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