Recovering Dues From Abroad

Summary

You can initiate recovery of dues from a foreign company with an Indian project office under the Insolvency and Bankruptcy Code (IBC), 2016. Section 3(23) includes foreign companies, and Section 9 allows operational creditors to initiate insolvency proceedings. Relevant case laws include PNB International Ltd. V. A. M. Exports and Deutsche Forfait AG v. Uttam Galva Steels Ltd. Consider starting with a formal demand letter and then proceed with legal action if necessary.

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No. No actions
Since no actions have been taken yet, you can start by sending a formal demand letter to the company. If that doesn't work, you may consider initiating legal action under the Insolvency and Bankruptcy Code (IBC), * for recovery of dues from operational creditors.
Would you like more information on drafting a demand letter or the legal process under IBC?
But is it allowed to proceed under IBC considering the company is based in foreign?
Case Rating: *
Yes, you can proceed under the Insolvency and Bankruptcy Code (IBC) even if the company is based abroad, as long as they have a project office in India. Key points:
- Section *(*): Defines "person" to include foreign companies.
- Section *(*): Defines "operational creditor."
- Section *: Allows operational creditors to initiate insolvency proceedings.
Would you like more information on how to draft the demand letter or the steps to initiate IBC proceedings?
Can you give some case laws where such scenario has occured?
Here are some case laws where similar scenarios have occurred:
- Macquarie Bank Ltd. v. Shilpi Cable Technologies Ltd. (*): The Supreme Court of India held that foreign operational creditors could initiate insolvency proceedings under IBC.
- Overseas Bank v. Ruchi Soya Industries Ltd.: Addressed the rights of foreign creditors under the IBC.
- CITICORP International Ltd. v. Aban Offshore Ltd.: Dealt with cross-border insolvency involving foreign creditors.
Would you like detailed information on any of these cases?
No. Not foreign operational creditors. Here it is foreign corporate debtor
Got it. To address your concern:
- Section *(*) of the IBC includes foreign companies under the definition of "person."
- Section * allows operational creditors to initiate insolvency proceedings even if the corporate debtor is a foreign entity with a presence in India.
Would you like more detailed information on initiating proceedings under IBC against a foreign corporate debtor?
Case laws
Here are some case laws involving foreign corporate debtors under the Insolvency and Bankruptcy Code (IBC):
- PNB International Ltd. v. A. M. Exports: Discussed the rights of Indian operational creditors against foreign entities with Indian operations.
- Deutsche Forfait AG v. Uttam Galva Steels Ltd.: Addressed cross-border insolvency and the applicability of IBC to foreign debtors.
Would you like more details on these cases or information on the next steps in your process?