Cross Border Insolvency in India

Globalization has significantly expanded cross-border commercial activities, enabling businesses to operate, hold assets and incur liabilities across multiple jurisdictions. Although this expansion generates economic opportunities, it also mitigates complex legal challenges that could arise if company becomes insolvent while its assets, creditors or businesses operations are spread across different countries. Cross-border insolvency involves legal proceedings concerning a debtor whose assets or creditors are located in multiple countries. In India, the framework for insolvency and bankruptcy resolution is primarily governed by the Insolvency and Bankruptcy Code, 2016. The aforesaid code is comprehensive legislation designed to consolidate and amend existing laws concerning insolvency resolution of companies, limited liabilities entities, partnerships, and individuals.