Formulating an Effective Cross-Border Insolvency Framework under the Indian Insolvency and Bankruptcy Code

Abstract

In 2016, India introduced the Insolvency and Bankruptcy Code largely in response to the non-performing crisis that plagued the domestic banking and financial sector for nearly two decades. However, given the large and growing presence of Indian businesses abroad, as well as multi-national corporations in India, a bankruptcy code without a cross-border insolvency framework was a task half done. This Note analyzes the nascent cross-border insolvency legal regime in India and makes recommendations for establishing an effective cross-border insolvency regime. In particular, it argues for the adoption of the UNCITRAL Model Law on Cross-Border Insolvency with certain modifications. Further, it also argues for the adoption of alternatives in the form of bilateral treaties and cross-border protocols in addition to the Model Law.