Manan Sabharwal, Amity Law School, Uttar Pradesh, Noida
Introduction:
Cross-Border Insolvency process resolves to aid a financially distressed insolvent debtor that has assets in more than one country and when multiple insolvency proceedings have been filed in more than one jurisdiction.
Corporate visions are not limited to home countries, with globalisation and an increase in business activity the casual brush-ins with a wide array of legal systems has also increased. In such a rapidly changing business environment a sub-par and incomplete Cross-Border Insolvency regime in India casts a shadow of doubt over real progress made and future prospects for current and prospective multi-national corporations in case a default occurs.
Though India has seen a reconditioning of Insolvency regime the current provisions in the I&B Code, 2016 which is the principal legislation for insolvency, bankruptcy and liquidation processes in India are not adept to encompass Cross-Border Insolvency problems. The 2 sections in the Code namely Section 234 and 235 barely accommodate Cross-Border Insolvency proceedings and act as only interim measures when the need is that of a proper structure.
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