Answer By law4u team
India has not yet formally adopted the UNCITRAL Model Law on Cross-Border Insolvency into its Insolvency and Bankruptcy Code (IBC). However, recognizing the importance of cross-border insolvency cooperation, India is in the process of considering amendments to incorporate provisions based on the Model Law to better address multinational insolvency cases.
Current Status of UNCITRAL Model Law Adoption in India
No Formal Adoption Yet
As of now, the IBC does not include explicit provisions for cross-border insolvency based on the UNCITRAL Model Law.
Ongoing Discussions and Recommendations
Various expert committees and government bodies have recommended adopting the Model Law or similar provisions to facilitate better handling of cross-border insolvency.
Proposed Amendments
The Ministry of Corporate Affairs and IBBI have explored amendments to the IBC to align with international standards, including the UNCITRAL Model Law framework.
Benefits of Adoption
Adoption would enable recognition of foreign insolvency proceedings, cooperation between jurisdictions, and efficient resolution of cases involving assets and creditors in multiple countries.
Interim Measures
Courts and insolvency professionals rely on existing legal tools and principles of comity to handle cross-border insolvency on a case-by-case basis.
Legal Framework and International Context
IBC, 2016 – Current insolvency law without explicit cross-border provisions
UNCITRAL Model Law – International standard for cross-border insolvency cooperation
Reports by Insolvency Law Committees – Recommendations for adoption
Example
In a case involving a company with assets in India and Europe, Indian courts currently rely on cooperation and mutual legal assistance principles rather than explicit Model Law provisions. Pending formal adoption, this can cause delays and legal uncertainty in managing cross-border insolvency.
