The future of cross-border insolvency reform in India

ABSTRACT The rapid expansion of international trade has increased the risk of cross-border insolvencies, creating significant challenges for the global economy. India has recognized this imperative and is preparing to regulate cross-border insolvency through rules framed by the Central Government under the Insolvency and Bankruptcy Code 2016. These rules will be modelled on the UNCITRAL Model Law on Cross-Border Insolvency 1997, thereby bringing India closer to international best practices. While this marks a significant step, we argue that the role of ad hoc mechanisms, such as Bilateral Insolvency Agreements and Protocols, must not be overlooked. We further argue that in order to strengthen judicial cooperation and communication with foreign courts, India needs to expediently adopt the Judicial Insolvency Network Guidelines (2016) and the Modalities (2018). Lastly, India should reform its judicial structure by empowering the National Company Law Tribunal with broader jurisdiction to provide extensive relief in cross-border insolvency cases.