Gayathri S & Aieshwaryaa N, SASTRA Deemed to be University
Introduction:
The rapid progress of technology, commerce, and the corporate world has led in an increase in the number of international corporations, finally resulting in a borderless relationship between nations and enterprises. Almost every country now has trading links that go beyond a single jurisdiction. Having a presence in many jurisdictions means having creditors and debtors in multiple locations. This complicates the insolvency procedure, which includes the overlapping of numerous laws and actions. Cross-border bankruptcy or international insolvency occurs when an insolvent debtor has credit and/or debtors in more than one jurisdiction, i.e. in separate nations.
The Insolvency and Bankruptcy Code, 2016 (IBC) was enacted as India's fundamental legislation governing insolvency and bankruptcy. Despite advances in harmonising the bankruptcy process in India, the IBC does not specify an adequate method for regulating cross- border insolvency procedures. Meanwhile, the Ministry of Corporate Affairs (MCA) examined the Code's implementation through its Insolvency Law Committee on Cross-Border Insolvency (ILC). Because the current insolvency framework does not meet Global Standards, the ILC suggested in its report re-evaluating the current insolvency framework and adopting the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Cross-Border Insolvency, 1997 (Model Law) to address cross-border insolvency concerns in India.
