Cross-Border Insolvency In India: Legal Challenges And Strategic Solutions Under The IBC
- IJLLR Journal
- Oct 21
- 1 min read
Janvi Kumari, Lovely Professional University
ABSTRACT
Cross-border insolvency has emerged as a critical challenge in the era of globalization, where corporate entities operate across multiple jurisdictions. India’s Insolvency and Bankruptcy Code, 2016 (IBC), while transformative for domestic insolvency, currently provides limited mechanisms to address international insolvency cases, primarily through Sections 234 and 235. The absence of a dedicated statutory framework, bilateral or multilateral agreements, and formal recognition of foreign proceedings poses significant legal, procedural, and operational challenges. This paper examines the conceptual underpinnings, statutory provisions, and judicial trends in cross- border insolvency in India, with a focus on landmark cases such as Jet Airways (India) Ltd., Essar Steel India Ltd., and Reliance Communications Ltd. It also compares India’s framework with jurisdictions like the United States, United Kingdom, and Singapore, highlighting best practices and model law adoption. The study identifies gaps in legislation, judicial discretion, and institutional capacity, and proposes reforms including the formal adoption of UNCITRAL Model Law principles, technological facilitation, and capacity-building measures for insolvency professionals. The paper concludes that a structured, transparent, and internationally aligned framework is essential for enhancing creditor confidence, expediting asset recovery, and positioning India as a proactive participant in global insolvency resolution.
Keywords: Cross-Border Insolvency, Insolvency and Bankruptcy Code 2016, UNCITRAL Model Law, Jet Airways Case, Transnational Insolvency, Corporate Restructuring, IBBI, International Cooperation, Judicial Trends, COMI.
