Section 235 IBC: Letter of Request to a Country Outside India in Certain Cases
Section 235 of the Insolvency and Bankruptcy Code, 2016 (IBC) provides a route for an Indian Adjudicating Authority to request assistance from a competent foreign court or authority when evidence or action concerning assets abroad is required in an Indian insolvency, liquidation or bankruptcy proceeding. It operates in conjunction with reciprocal arrangements contemplated by Section 234.
Section 235: Statutory text
235. (1) Notwithstanding anything contained in this Code or any law for the time being in force if, in the course of insolvency resolution process, or liquidation or bankruptcy proceedings, as the case may be, under this Code, the resolution professional, liquidator or bankruptcy trustee, as the case may be, is of the opinion that assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor, are situated in a country outside India with which reciprocal arrangements have been made under section 234, he may make an application to the Adjudicating Authority that evidence or action relating to such assets is required in connection with such process or proceeding.
(2) The Adjudicating Authority on receipt of an application under sub-section (1) and, on being satisfied that evidence or action relating to assets under sub-section (1) is required in connection with insolvency resolution process or liquidation or bankruptcy proceeding, may issue a letter of request to a court or an authority of such country competent to deal with such request.
Statutory wording follows the supplied webpage. For authoritative current text and commencement status, consult the official consolidated legislation and notifications.
Meaning and legal effect of Section 235
Subsection (1): Application by the insolvency office-holder
The provision identifies the resolution professional, liquidator or bankruptcy trustee as the person who may apply to the Adjudicating Authority. The applicant must consider that the relevant debtor has assets in a foreign country covered by reciprocal arrangements under Section 234, and that evidence or action concerning those assets is needed for the Indian process or proceeding.
The reference to a corporate debtor or debtor, including a personal guarantor of a corporate debtor, makes the provision relevant to the types of insolvency and bankruptcy proceedings covered by its language. It does not itself create a new substantive insolvency process.
Subsection (2): Satisfaction and discretion of the Adjudicating Authority
The Adjudicating Authority must assess the application and be satisfied that evidence or action relating to the overseas assets is required for the proceeding. The word may indicates that issuing a letter of request is discretionary; the application does not automatically result in a letter.
The letter is addressed to a competent court or authority in the relevant foreign country. It is a request for assistance, not an Indian order that automatically binds a foreign institution or transfers ownership of overseas property.
How a letter of request may be sought
- Identify foreign assets: The office-holder identifies property or assets located outside India and establishes their relevance to the proceeding.
- Check the legal framework: Verify whether the foreign country is covered by applicable reciprocal arrangements under Section 234 and any relevant notifications.
- Determine the assistance required: Specify what evidence or action is needed, such as information about an asset or assistance with steps involving it.
- Apply to the Adjudicating Authority: Present the relevant facts and supporting material under Section 235(1).
- Authority considers the request: If satisfied under Section 235(2), the Adjudicating Authority may issue a letter to the competent foreign court or authority.
- Foreign response: Any assistance depends on the applicable arrangement and the law and procedures of the receiving jurisdiction.
This is an explanatory outline, not a prescribed statutory filing checklist or a guarantee of recognition by a foreign court.
Key terms explained
Adjudicating Authority: The tribunal or authority designated by the IBC for the relevant class of insolvency or bankruptcy proceeding. For corporate persons, the National Company Law Tribunal (NCLT) has the role described in Section 60; the statutory scheme for individuals and firms is addressed in Part III, including Section 179, subject to applicable provisions and notifications.
Resolution professional: An insolvency professional who performs functions assigned under the corporate insolvency resolution framework, including Section 23, where applicable.
Liquidator: The person appointed to conduct liquidation in accordance with the Code, including Section 34 for corporate liquidation.
Bankruptcy trustee: The insolvency professional appointed under the relevant provisions governing bankruptcy of individuals, including the framework in Part III.
Reciprocal arrangements: Arrangements contemplated by Section 234 between the Central Government and a foreign government for implementing the Code across borders, subject to the applicable legal instruments.
Letter of request: A formal request issued by the Indian Adjudicating Authority under Section 235(2) to a competent foreign court or authority for assistance concerning assets abroad.
Section 234 and Section 235: The difference
| Provision | Primary function |
|---|---|
| Section 234 | Empowers the Central Government to enter into agreements with foreign governments and issue notifications concerning the application of the IBC to overseas assets in reciprocating countries. |
| Section 235 | Provides for an application by the relevant insolvency office-holder and a possible letter of request from the Adjudicating Authority to a competent foreign court or authority. |
These provisions address distinct parts of cross-border cooperation. Neither should be treated as a general rule that all Indian insolvency orders are automatically enforceable overseas.
Practical example
Suppose a corporate debtor undergoing insolvency proceedings in India is believed to own an asset in another country. A resolution professional may need records about ownership or action concerning that asset. If the conditions of Section 235, including the necessary reciprocal arrangement under Section 234, are met, the professional may apply to the Adjudicating Authority for a letter of request. The Authority must independently decide whether the statutory requirements justify issuing it.
Related IBC provisions and official resources
- Section 3: General definitions relevant to the Code.
- Section 5: Definitions applicable to the corporate insolvency resolution framework.
- Section 60: Adjudicating Authority for corporate persons.
- Section 179: Adjudicating Authority for individuals and firms, subject to the statutory scheme.
- Section 234: Agreements with foreign countries.
- Section 235: Letters of request to foreign countries in certain cases.
Read the Insolvency and Bankruptcy Code, 2016 overview, the official India Code portal and the IBBI legal framework for legislation, rules, regulations and relevant notifications. The IBBI website also provides official institutional information.
Frequently asked questions
What is the purpose of Section 235 of the IBC?
It provides a mechanism for an Indian Adjudicating Authority to request assistance from a competent foreign court or authority regarding overseas assets relevant to specified insolvency, liquidation or bankruptcy proceedings.
Who may apply for a letter of request?
Under Section 235(1), the resolution professional, liquidator or bankruptcy trustee, as applicable to the proceeding, may make the application.
Can a resolution professional directly issue a letter to a foreign court under Section 235?
No. The professional may apply to the Adjudicating Authority. Under subsection (2), it is the Adjudicating Authority that may issue the letter after considering the statutory conditions.
Does Section 235 apply to assets in every foreign country?
No. The provision refers to countries with which reciprocal arrangements have been made under Section 234. The current legal and operational position should be verified for the country concerned.
Does the letter automatically compel a foreign court to act?
No. A letter of request is a request for cooperation; its treatment depends on the relevant reciprocal framework and the foreign jurisdiction's applicable law.
Does Section 235 cover personal guarantors?
The text expressly refers to assets of a debtor, including a personal guarantor of a corporate debtor, where the other statutory conditions are met.
Updated: 23 October 2026. This article is general legal information and does not replace the applicable official text, notifications or jurisdiction-specific legal advice.