Corporate Insolvency And Cross-Border Claims: Is The IBC Future-Ready?
- IJLLR Journal
- Jun 15
- 1 min read
Jay Pradeep Gavade & Ajit Singh Bajiya, B.A.LL.B., Manikchand Pahade Law College, Chhatrapati Sambhajinagar (Aurangabad), Maharashtra, India
ABSTRACT
The Insolvency and Bankruptcy Code, 2016 (IBC) marked a paradigm shift in India’s insolvency regime, aiming for time-bound resolution and maximisation of asset value. However, in an increasingly globalised economy, the complexities of cross-border insolvency have become more pronounced. The question arises: Is the IBC future-ready to handle such transnational challenges? This abstract explores the limitations of the existing legal architecture and examines the need for India to adopt a more robust and universally accepted model, such as the UNCITRAL Model Law on Cross-Border Insolvency.
With the rise of multinational corporations and cross-border investments, insolvency proceedings often span multiple jurisdictions, creating legal and procedural conflicts. The lack of a comprehensive cross-border framework under the IBC can lead to delayed recoveries, forum shopping, and erosion of creditor confidence. The abstract analyses Recent developments, including the recommendation of a separate chapter on cross-border insolvency by the Insolvency Law Committee and the Ministry of Corporate Affairs' 2018 draft proposal to adopt the UNCITRAL Model Law, reflect a growing recognition of the need for reform.
This abstract argues that for India to maintain investor confidence and ensure seamless resolution in a globalised financial ecosystem, the IBC must evolve to embrace internationally harmonised principles while safeguarding domestic interests. Thus, it calls for urgent legislative and institutional preparedness to make the IBC truly future-ready for cross-border insolvency challenges.
Keywords: Insolvency and Bankruptcy, Ministry of Corporate Affairs, Corporate Insolvency, Cross-Border Insolvency
