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2020 ] FOREIGN TRADE POLICY E19

Alternate Email : _______________________
Tele No. : ______________________________

[To be submitted by foreign parent company on its letterhead indicating full chain
of supply in case of other subsidiaries are also involved. Any additional page(s)
must be signed by the same person who signs this form.

[D.G.F.T. Public Notice No. 65/2015-20, dated 17-3-2020]

FTP - Circulars
National Company Law Tribunal (NCLT) — Whether to
Institute or continue proceedings under FT (DR)
Act/Rules against Companies/Firms which are in NCLT
under Insolvency and Bankruptcy Code — Clarification
issued by D.G.F.T.
[Add on page 1306 of 25th Edition of FTP & Handbook of Procedures, Vol. 1. 2019-20]
Subject : Institution and/or continuation of proceedings under Foreign Trade
(Development & Regulation) Act, 1992 and Rules thereunder against
companies/firms against whom proceedings have been instituted in the
National Company Law Tribunal (NCLT) under the Insolvency and
Bankruptcy Code, 2016.
References have been received from Regional Authorities regarding in-
stitution and continuation of proceedings against companies/firms which are in
the National Company Law Tribunal (NCLT) under the Insolvency and Bank-
ruptcy Code, 2016.
2. In this regard attention is invited to :
(i) Section 33(5) of IBC Code, 2016 which, inter alia, states that “subject to
Section 52, when a liquidation order has been passed, no suit or other
legal proceedings shall be instituted by or against the corporate debt-
or : Provided that a suit or other legal proceedings may be instituted
by the liquidator on behalf of the corporate debtor, with the prior ap-
proval of the Adjudicating Authority.
(ii) Section 35(1)(k) which states that
35.(1) “Subject to the directions of the Adjudicating Authority,
the liquidator shall have the following powers and duties,
namely :-
(k) to institute or defend any suit, prosecution or other legal pro-
ceedings, civil or criminal, in the name of on behalf of the corpo-
rate debtor”.
3. The matter was taken up with the Department of Legal Affairs who
opined that :
Unless there are specific directions by the National Company Law Tribunal
(NCLT) prohibiting proceedings under the FT (D&R) Act/Rules, the Adjudicat-
ing Authority can proceed under the FT (D&R) Act/Rules. However, the liquida-
tor shall be added as one of the respondent along with the parties.
EXCISE LAW TIMES  1st April 2020  157