India has managed to resolve a sizeable chunk of its non-performing assets, to a fairly significant extent, by enacting the Insolvency & Bankruptcy Code, 2016. While this has certainly spelt victory on the domestic front for India; however, India must be also cognizant of its ever-expanding international footprint, and accordingly step-up its law and policy from time to time. India’s insolvency law is no exception to this mandate. In fact, it should be one of the first laws that must be upscaled to a global standard.
Thus, from a pure insolvency law standpoint, achieving global economies of scale entails adequate legal provisioning for cross-border insolvency scenarios. Hence the subject-matter of this paper focuses on the interface that lies in-between the incumbent insolvency framework in India vis-à-vis cross-border insolvencies.
The crux of this paper is that the incumbent insolvency framework in India is not adequately equipped to address cross-border insolvencies, and that it needs to adopt the Model Law on Cross-Border Insolvency promulgated by United Nations Commission on International Trade Law.