Ipsita Rout, KIIT SCHOOL OF LAW, KIIT UNIVERSITY
Abstract
India opened its economy to the world in the year 1992 and this process of globalization has benefited India in numerous ways. Many multinational companies opened their branches in various parts of the country. This resulted in increased foreign reserves as well foreign investment. It has also been observed that the decisions taken regarding cross border investment directly affects the insolvency and bankruptcy law of the country. Since Indian economy is a developing one there is a lot of scope in making the business environment friendly. Also, the Indian Laws are not adequately equipped in dealing with cross border insolvency complexities. Hence the Government of India has set up a committee to address the issue of cross border insolvency after a comprehensive analysis of UNCITRAL Model Law and European Regulation. Therefore, this research paper will consider how India can incorporate cross border insolvency law by analysing UNCITRAL Model law on cross border insolvency and EC regulation.
The first part of the paper introduces cross border insolvency - the means and provisions prescribed to deal with cross border insolvency under Insolvency and Bankruptcy Code, 2016. The second part examines different theories of cross border insolvency and analyses the legal framework of those countries which have adopted the UNCITRAL Model law on cross border insolvencies. Further this part investigates jurisprudence of cross border insolvency by analysing various case law in different jurisdiction. The recommendation of Insolvency Law Committee report on cross border insolvency has been discussed in at last. Finally, the projects recommend as to why India needs to incorporate cross border insolvency in the code and its benefits in dealing with cross border insolvency.
KEYWORDS: Cross border Insolvency, UNCITRAL, Insolvency and Bankruptcy Code 2016.
