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

Under Section 234(1) of the IBC, which statement correctly describes the Central Government's power regarding foreign countries?

Section 234(1) lets the Central Government enter into an agreement with the Government of any country outside India for enforcing the provisions of the Code. It sets no condition of UN membership or parliamentary ratification, and it does not oblige adoption of foreign insolvency law.

  1. AIt may enter into an agreement with the Government of any country outside India for enforcing the provisions of the CodeCorrect
  2. BIt may require the Adjudicating Authority to adopt the foreign country's insolvency law
  3. CIt may enter into agreements only with countries that are members of the UN
  4. DIt may enter into agreements only after Parliament ratifies each one by a special resolution

Explanation

Section 234(1) empowers the Central Government to enter into an agreement with the Government of any country outside India for enforcing the Code. The text has no UN-membership or parliamentary ratification condition, so those options are wrong.

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