Cross-Border Insolvency In India: An Analysis Of Legal Framework And Global Practices
- IJLLR Journal
- 2 days ago
- 1 min read
Poorna S, LLM, Corporate and Commercial Law, Christ Deemed to be University (Bengaluru)
ABSTRACT
Cross-border insolvency has ceased to be a fringe issue in the Indian commercial universe. Indian companies’ capital raises abroad, hold assets and subsidiaries outside India, and have counterparties in various jurisdictions to whom they trade. When a financial distress situation strikes, there are challenging issues of recognition, coordination and value maximisation across borders that are faced by the domestic process under the Insolvency and Bankruptcy Code, 2016 (IBC). In this article, we critically analyse India's cross-border insolvency regime, and trace its doctrinal roots in universalism, territorialism and modified universalism and assess the statutory framework under the IBC, specifically Sections 234 and 235. It traces the jurisprudential evolution of key judicial developments, including the coordination-centric approach in Jet Airways, and identifies gaps persisting due to the lack of a comprehensive recognition regime, and places current reform suggestions to align with the UNCITRAL Model Law on Cross-Border Insolvency. The paper ends with a set of ready-to-use recommendations that are relevant for India's institutional context, profile of creditors, and development goals.
Keywords: Cross-Border Insolvency, Insolvency and Bankruptcy Codes, UNCITRAL Model Laws, Foreign Direct Investment, NCLT and NCLAT.
