CROSS-BORDER INSOLVENCY IN INDIA: EVALUATING THE IBC’S FRAMEWORK IN LIGHT OF THE UNCITRAL MODEL LAW

AUTHOR – ROSHINI PARAMESHWARI S, LLM SCHOLAR (CORPORATE AND COMMERCIAL LAW) AT SCHOOL OF LAW, CHRIST (DEEMED TO BE UNIVERSITY)

BEST CITATION – ROSHINI PARAMESHWARI S, CROSS-BORDER INSOLVENCY IN INDIA: EVALUATING THE IBC’S FRAMEWORK IN LIGHT OF THE UNCITRAL MODEL LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 969-980, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Cross-border insolvency has emerged as a key challenge in the globalized economy, necessitating a robust legal framework to handle multinational corporate failures. India’s Insolvency and Bankruptcy Code (IBC), 2016, provides a comprehensive mechanism for domestic insolvency but lacks a dedicated provision for cross-border insolvency. In contrast, the UNCITRAL Model Law on Cross-Border Insolvency (1997) has been widely adopted as an international standard to facilitate recognition, cooperation, and coordination of insolvency proceedings across jurisdictions.

This article examines India’s existing approach to cross-border insolvency under the IBC, comparing it with the principles of the UNCITRAL Model Law. It also explores landmark insolvency cases, such as Jet Airways, highlighting the practical implications of India’s current framework. The study concludes by assessing India’s proposed amendments and recommending steps for a more effective cross-border insolvency regime.