(a) In relation to each type of insolvency procedure available in the legal system of this economy, what connection must there be between the debtor organization and the law of the forum?

Are any other requirements imposed in relation to a connection between the debtor and the forum before an insolvency procedure may be initiated? If so, briefly describe these requirements.

Are any other requirements imposed in relation to a connection between the debtor and the forum before an insolvency procedure may be initiated? If so, briefly describe these requirements.

(b) Are any particular rules or conditions imposed in the legal system of this economy regarding the opening or commencement of an insolvency procedure in cases where the connection between the debtor and the forum is limited to only one of the factors mentioned in (a) above?

 

Under Section 10 the court having jurisdiction shall be (a) the High Court having jurisdiction in relation to the place at which the Registered Office of the company concerned is situate except to the extent to which jurisdiction has been conferred of any District Court, subordinate to the High Court and (b) where jurisdiction has been so conferred, the District Court in regard to which matters falling within the scope of the jurisdiction concerned in respect of companies having registered offices in the District. The expression "Registered Office" means the place which has longest been the registered office of the company during six months immediately preceding the presentation of the petition for winding up.

Consequently the registered office of the insolvent company or the Debtor Company determines the place of instituting the insolvency procedure. Other requirements are not relevant.

The requirements stipulated for circumstances in which a company may be wound up by the Court are as provided in Section 433 of the Companies Act which has been discussed above. Inability to pay debts is a ground for commencement of an insolvency procedure and a 21 days notice is required to be issued. If an execution process returns unsatisfied or if the courts determines that the company is unable to pay its debts then it can order the winding up of a company after notice has been properly issued.