Cross-Border Insolvency In India: Challenges And Opportunities For Reform

The rapid globalization of trade and commerce has made cross-border insolvency a significant concern for multinational corporations and investors. With the growth of international transactions and foreign direct investment, the need for an efficient legal framework to resolve insolvency cases that transcend national borders has become critical. This research paper delves into cross-border insolvency under India’s Insolvency and Bankruptcy Code (IBC), 2016, identifying the key gaps in the current framework, particularly in the handling of cross-border insolvency cases. By examining global best practices, including the UNCITRAL Model Law on Cross-Border Insolvency, the paper underscores the urgent need for India to adopt a harmonized approach to cross-border insolvency resolution. Through case studies and legal analysis, the paper highlights the challenges faced by Indian courts and stakeholders in managing transnational insolvency proceedings, emphasizing the importance of international cooperation and judicial coordination to protect creditor rights and ensure equitable asset recovery.