Abstract

India has consistently been at the forefront of implementing economic reforms aimed at deeper integration with the global market. A key driver of this strategy has been the government’s ongoing efforts to enhance the ease of doing business and create a more conducive climate for investment. Among the various reform areas, arbitration and insolvency law have seen some of the most important developments in recent years. One of the most notable milestones was the enactment of the Insolvency and Bankruptcy Code (IBC), 2016, coupled with the introduction of a streamlined fast-track Corporate Insolvency Resolution Process (CIRP)—both designed to expedite resolution and maximize recoveries for creditors. However, while domestic insolvency frameworks have strengthened considerably, the area of cross-border insolvency remains nascent and in urgent need of attention. This paper examines India’s existing legal position on cross-border insolvency, identifies its weaknesses, and analyzes the recommendations of the Insolvency Law Committee (ILC) in its formal reports. It further explores how the internationally recognized UNCITRAL Model Law on Cross-Border Insolvency could be adapted—with India-specific modifications—to fit the country’s legal structure and economic realities. Incorporating such a framework could not only strengthen investor confidence but also provide assurance to both foreign creditors operating in India and Indian businesses with overseas interests.

Keywords