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ARTICLE · 01 SEPTEMBER 2020

India Introduces Guidelines On Cross Border Insolvency

Cross border insolvency in India is legal terrain that is wholly unregulated.

IndiaInsolvency/Bankruptcy/Re-Structuring

Introduction

Cross border insolvency in India is legal terrain that is wholly unregulated. This lacuna in India's nascent insolvency regime has sought to be remedied by the Government of India, (GOI) which recently released a set of draft guidelines. The guidelines mirror the international insolvency framework established by the UNCITRAL Model Law on Cross Border Insolvency, 1997, (Model Law), albeit, with minor modifications.

Brief Analysis of the Draft Guidelines

Similar to the domestic insolvency regime, the National Company Law Tribunal, (NCLT) is the designated adjudicating authority for cross border insolvency issues. The guidelines introduce into Indian jurisprudence, familiar concepts of international insolvency such as 'centre of main interest' and 'foreign main proceeding'.

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