A Perspective On Cross-Border Aspects Of Insolvency And Implications For Resolution Plans And Recovery

Isha Singhal, Amity University, Noida

ABSTRACT

The modern global economy is characterized by increased cross-border trade and investment, necessitating a robust framework for resolving insolvency disputes that span multiple jurisdictions. This paper examines the evolution and current state of cross-border insolvency law, focusing on the UNCITRAL “Model Law on Cross-Border Insolvency” (MLCBI) and its implications for India. The MLCBI, adopted in 1997, aims to facilitate cooperation between courts and authorities from different jurisdictions, ensuring fair and efficient administration of cross-border insolvencies. However, India's current insolvency framework lacks a comprehensive cross-border component, with only limited provisions in the “Indian Bankruptcy Code” (IBC) addressing this issue. The paper analyses recent cases, such as the Jet Airways case, which highlight the need for a more robust cross-border insolvency framework in India. It also explores the potential impact of adopting the MLCBI on India's legal landscape, including the role of commercial courts in expediting cross-border insolvency proceedings. The paper concludes with recommendations for enhancing India's cross-border insolvency framework, including the adoption of the MLCBI and the establishment of specialized commercial courts to handle cross-border insolvency cases.

Keywords: Cross-border insolvency, MLCBI, IBC, Commercial courts