By Himanshu Handa, Associate
Presently, India does not have a clear legal framework to deal with cross border insolvency and the Ministry of Corporate Affairs plans to introduce draft chapter on cross border insolvency under the Insolvency & Bankruptcy Code, 2016 (IB Code) as it issued a public notice inviting suggestions and comments on the same. The chapter on cross border insolvency would be generally based on the United Nations Commission on International Trade Law Model Law on Cross Border Insolvency (the “UNCITRAL Model Law”)1. On 16th November 2017, Government of India also appointed ‘Insolvency Law Committee2’ headed by Secretary of Ministry of Corporate Affairs (MCA) to give recommendations on adopting the Model Law in India.
This article will discuss the complexities of cross-border insolvency in the present Indian context, the article will further set out the broad principles of the UNCITRAL Model Law and implication of cross border insolvency provisions in India. This article will further try to define the effects, advantages, disadvantages, objective, implementation and application of the model law in the Indian context.