The Insolvency Law Committee (ILC) constituted by MCA to recommend amendments to IBC, has submitted its 2nd Report to the Government, which deals with cross border insolvency. 

ILC has recommended the adoption of the UNCITRAL Model Law of Cross Border Insolvency, 1997, as it provides for a comprehensive framework to deal with cross border insolvency issues.  

Also, it has recommended a few carve outs to ensure that there is no inconsistency between the domestic insolvency framework and the proposed Cross Border Insolvency Framework.

The UNCITRAL Model Law has been adopted in 44 countries and forms part of international best practices in dealing with cross border insolvency issues.  The model law gives precedence to domestic proceedings and protects public interest.

The necessity of having Cross Border Insolvency Framework under IBC arises from the fact that many Indian companies have a global footprint and many foreign companies have presence in multiple countries including India.

The inclusion of the Cross Border Insolvency Chapter in IBC 2016 will be a major step forward and will bring Indian Insolvency Law at par with more matured jurisdictions.

For more: http://www.mca.gov.in/Ministry/pdf/CrossBorderInsolvencyReport_22102018.pdf