Cross-Border Insolvency And The IBC: Need For A Comprehensive Framework
- IJLLR Journal
- May 22
- 1 min read
Divyansh Singh, Amity University, Madhya Pradesh
ABSTRACT
This research paper examines the critical need for a comprehensive cross- border insolvency framework within India's Insolvency and Bankruptcy Code, 2016 (IBC). Despite significant reforms in domestic insolvency law, India lacks robust mechanisms to address the complex challenges posed by corporate failures with cross-jurisdictional dimensions. The paper analyzes current provisions under Section 234 and 235 of the IBC that remain unimplemented due to practical challenges. It evaluates the UNCITRAL Model Law's principles and compares insolvency frameworks across key jurisdictions like Singapore, UK, and US to identify best practices. Special attention is given to the Insolvency Law Committee's 2018 report and subsequent Draft Chapter on Cross-border Insolvency. The paper identifies key obstacles including jurisdictional conflicts, foreign proceeding recognition, and coordination between courts across borders. It proposes integration of modified UNCITRAL provisions with suitable safeguards for India's economic sovereignty. The research concludes by recommending a balanced approach that protects local creditors while facilitating multinational insolvency proceedings in an increasingly interconnected global economy.
Keywords: Cross-border insolvency, Insolvency and Bankruptcy Code, UNCITRAL Model Law, foreign proceedings recognition, economic sovereignty, multinational corporate restructuring, jurisdictional conflicts, Insolvency Law Committee, Draft Chapter on Cross-border Insolvency, bilateral insolvency agreements.
