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

Under the Insolvency and Bankruptcy Code, 2016, which authority is empowered to enter into an agreement with the Government of a country outside India for enforcing the provisions of the Code?

The Central Government may enter into an agreement with the Government of any foreign country to enforce the Code under Section 234(1). The Insolvency Board, the Adjudicating Authority and the Committee of Creditors have no such treaty-making power under the Code.

  1. AThe Central GovernmentCorrect
  2. BThe Insolvency and Bankruptcy Board of India
  3. CThe National Company Law Tribunal
  4. DThe Committee of Creditors of a corporate debtor

Explanation

Section 234(1) says the Central Government may enter into an agreement with the Government of any country outside India for enforcing the Code. The Board, the Adjudicating Authority and the Committee of Creditors are not given this power. Hence only the Central Government is correct.

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