Sections 234 and 235 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 234 lets the Central Government enter into an agreement with the Government of another country for enforcing the Code, and lets it notify how the Code applies to assets situated in a country with which reciprocal arrangements have been made. Section 235 lets a resolution professional, liquidator or bankruptcy trustee ask the Adjudicating Authority for a letter of request to a foreign court or authority when evidence or action about assets abroad is needed. This article follows the IBBI consolidated text of the Code amended up to 12 August 2021 and notes where the Amendment Act, 2026 adds a separate cross-border power in new section 240C.
Section 234(1): the Central Government may agree with another country's government to enforce the Code. Section 234(2): by notification it may direct that the Code applies to assets or property of a corporate debtor or debtor, including a personal guarantor of a corporate debtor, in a country with which reciprocal arrangements have been made, subject to specified conditions. Section 235: the resolution professional, liquidator or bankruptcy trustee may apply to the Adjudicating Authority, which, if satisfied, may issue a letter of request to a competent court or authority of that country.
Section 234(1): agreements
"The Central Government may enter into an agreement with the Government of any country outside India for enforcing the provisions of this Code."
The power is to "enter into an agreement"; the other party is "the Government of any country outside India"; the purpose is "enforcing the provisions of this Code". The section does not say what such an agreement must contain, and it prints no list of countries. Which agreements, if any, have been made is not in the texts consulted.
Section 234(2): notifying the application of the Code
"The Central Government may, by notification in the Official Gazette, direct that the application of provisions of this Code in relation to assets or property of corporate debtor or debtor, including a personal guarantor of a corporate debtor, as the case may be, situated at any place in a country outside India with which reciprocal arrangements have been made, shall be subject to such conditions as may be specified."
Broken into parts:
- Instrument: a notification in the Official Gazette.
- Subject-matter: the application of the Code's provisions to assets or property.
- Whose assets: of a "corporate debtor or debtor, including a personal guarantor of a corporate debtor, as the case may be".
- Where: "situated at any place in a country outside India with which reciprocal arrangements have been made".
- Effect: the application "shall be subject to such conditions as may be specified".
The phrase "reciprocal arrangements" is not defined in the text. Sub-section (1) speaks of an agreement; sub-section (2) of reciprocal arrangements. The text does not say whether the two are the same thing, and this article does not equate them.
Section 235(1): application by the professional
"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."
The elements:
- Stage: during an insolvency resolution process, liquidation or bankruptcy proceedings under the Code.
- Applicant: the resolution professional, liquidator or bankruptcy trustee, as the case may be. The interim resolution professional is not named in the section; whether the term "resolution professional" in section 235 is read to include him depends on the definitions, which this article does not explain.
- Opinion: the applicant is "of the opinion" that assets are in a country with which reciprocal arrangements have been made "under section 234".
- Request: he applies to the Adjudicating Authority "that evidence or action relating to such assets is required in connection with such process or proceeding".
- Override: the opening words, "Notwithstanding anything contained in this Code or any law for the time being in force".
Section 235(2): the letter of request
"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."
- Condition: the Adjudicating Authority must be "satisfied" that the evidence or action is "required in connection with" the process or proceeding.
- Power, not duty: it "may issue".
- Addressee: "a court or an authority of such country competent to deal with such request".
- What the text leaves out: the form of the letter, who bears the cost, and the time within which the foreign court or authority is to act. The text is silent on these.
Example (invented). A resolution professional appointed to conduct a corporate insolvency resolution process learns that Delhi Alloys Private Limited owns a warehouse in a country with which reciprocal arrangements have been made under section 234. He believes records about the warehouse are needed in the process. He applies under section 235(1) to the Adjudicating Authority. If it is satisfied that the evidence or action is required, it may issue a letter of request to a court or authority of that country competent to deal with it. Someone preparing such an application, or advising on assets abroad, can start with a legal consultation to line up the facts against these words.
| Step | Provision | Who | Condition |
|---|---|---|---|
| Agreement | 234(1) | Central Government | With the Government of a country outside India |
| Notification of conditions | 234(2) | Central Government | Reciprocal arrangements made; assets abroad |
| Application | 235(1) | Resolution professional, liquidator or bankruptcy trustee | Opinion that assets are abroad; evidence or action required |
| Letter of request | 235(2) | Adjudicating Authority | Satisfied that evidence or action is required |
How this fits with the 2026 Act
Sections 234 and 235 are not amended by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026). The Act inserts new sections 240B and 240C, including a rule-making power for "administering and conducting cross-border insolvency proceedings", explained in article 141. Our post on cross-border insolvency under the IBC gives a wider overview. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether any related change has been notified.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help with assets or evidence outside India?
When assets of a debtor or personal guarantor sit abroad, the first questions are whether reciprocal arrangements have been made and what the Adjudicating Authority needs to see. Our team can go through your facts in a legal consultation and set out the questions to answer before any application.
Key takeaways
- Section 234(1) lets the Central Government agree with another country's government on enforcing the Code.
- Section 234(2) lets it notify conditions for applying the Code to assets abroad in a country with which reciprocal arrangements have been made, including assets of a personal guarantor of a corporate debtor.
- Under section 235 the resolution professional, liquidator or bankruptcy trustee may apply to the Adjudicating Authority for a letter of request.
- The Adjudicating Authority must be satisfied that evidence or action is required; it "may" issue the letter.
- The Amendment Act, 2026 adds a separate cross-border rule-making power in section 240C; check whether it has been notified.
Read next
- Sections 240B and 240C: electronic portal and rules for cross-border insolvency
- Sections 231 to 233: bar of jurisdiction, public servants and good-faith protection
- Section 235A: power of the Adjudicating Authority to impose penalties
- Cross-border insolvency under the IBC
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.