Section 235: Letter of Request to a Country Outside India in Certain Cases

Section 235 of the Insolvency and Bankruptcy Code, 2016 provides a statutory mechanism for seeking evidence or action concerning assets situated outside India where reciprocal arrangements exist under Section 234. It operates during an insolvency resolution process, liquidation or bankruptcy proceeding under the Code.

Text of Section 235 of the Insolvency and Bankruptcy Code, 2016

235. Letter of request to a country outside India in certain cases.

(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.

Meaning and Scope of Section 235

Section 235 is a cross-border assistance provision. Its purpose is to enable an insolvency professional or bankruptcy trustee to approach the Adjudicating Authority when relevant assets are located in a foreign country covered by reciprocal arrangements under Section 234 of the IBC.

The section does not itself create a general international insolvency regime. The statutory route is linked to reciprocal arrangements contemplated by Section 234. Where the requirements of Section 235 are met, the Adjudicating Authority may issue a formal letter of request to a competent foreign court or authority for evidence or action relating to the overseas assets.

Who May Seek a Letter of Request?

Depending on the proceeding, the application may originate from the resolution professional, liquidator or bankruptcy trustee. The provision expressly covers assets of a corporate debtor or debtor and also refers to a personal guarantor of a corporate debtor.

Conditions for an Application Under Section 235

An insolvency resolution process, liquidation or bankruptcy proceeding must be underway under the IBC.
The relevant professional must form an opinion that assets are situated outside India.
The foreign country must be one with which reciprocal arrangements have been made under Section 234.
Evidence or action concerning those foreign assets must be required in connection with the IBC process or proceeding.
An application must be made to the competent Adjudicating Authority.

Role of the Adjudicating Authority

The Adjudicating Authority does not issue a letter of request automatically. Under Section 235(2), it must first be satisfied that the evidence or action concerning the foreign assets is required in connection with the relevant insolvency resolution, liquidation or bankruptcy proceeding. Once satisfied, it may issue the letter of request to a competent court or authority in the foreign country.

Connection Between Sections 234 and 235

Section 234 authorises the Central Government to enter into agreements with governments outside India for enforcing provisions of the IBC and permits application of the Code to foreign-situated assets to be made subject to notified conditions. Section 235 supplies the procedural mechanism for a letter of request where such reciprocal arrangements exist.

Effect of the Non-Obstante Clause

Section 235(1) begins with the words "Notwithstanding anything contained in this Code or any law for the time being in force". This is a non-obstante clause intended to give the provision overriding operation within its defined field. Its use remains subject to the express statutory conditions in Section 235, including the requirement of reciprocal arrangements under Section 234.

Current Legal Position

Section 235 was brought into force with effect from 1 April 2017. The Insolvency and Bankruptcy Code (Amendment) Act, 2026 introduced substantial changes to the Code, including substitution of Section 235A, but it did not substitute the text of Section 235 reproduced above. Accordingly, Section 235 continues to govern the statutory letter-of-request mechanism for qualifying foreign assets.

Practical point: Section 235 should be read together with Section 234. The availability and effectiveness of a letter of request in a particular foreign jurisdiction depend on satisfaction of the statutory conditions and the applicable reciprocal arrangement.

Related IBC Provisions

For the surrounding statutory framework, see Section 231 - Bar of jurisdiction, Section 232 - Members, officers and employees of Board to be public servants, Section 233 - Protection of action taken in good faith, Section 234 - Agreements with foreign countries, Section 236 - Trial of offences by Special Court, Section 237 - Appeal and revision, Section 238 - Provisions of this Code to override other laws, Section 239 - Power to make rules and Section 240 - Power to make regulations.

Legal position reviewed on 30 September 2026. Readers should verify any later amendment, notification or judicial decision applicable to their facts.