Volume 1 Issue 1

Volume 1 Issue 1

Devising a Legal Mechanism in India for Resolving Cross-Border Insolvency

By Shefali Prasad,
Student , Symbiosis Law School , Hyderabad

Abstract

The volume of transnational business transactions has increased exponentially, and along with it, so has the need for consonance on cross-border insolvency laws across different jurisdictions. Not only does a strong framework addressing multinational default aid the economy of a country, it also aligns the country’s laws with the international consensus. India has emerged as an important economy to the world. However, the legal framework for cross-border insolvency has been inadequate. Moreover, the pandemic has imposed a mandatory pause and left businesses in an unprecedented situation. Appropriate measures for the future are crucial to safeguard the interests of businesses as well as of their creditors. This article aims to make a comprehensive study of the cross-border insolvency regime of India to recognize the needs of the law required in the Indian, particularly in reference to adoption of the UNCITRAL Model Law for cross-border insolvency as it is the most significant and comparatively widely accepted piece of law for the subject. The article studies the existing legal regime and the need for law specific to cross-border insolvency. It examines the workability of incorporation of the UNCITRAL Model Law in India with a cross-jurisdictional analysis of various states which have adopted the law with or without variations to it. Finally, the article critically analyzes the draft law proposed for India in light of the objectives it aims to achieve and contemporary trends emerging in this area

Recommended Citations :

OSCOLA

Shefali Prasad, ‘Devising a Legal Mechanism in India for Resolving Cross-Border Insolvency’, [2020] 1 IJBLS
https://intbusinesslaw.com/devising-a-legal-mechanism-in-india-for-resolving-cross-border-insolvency/

Bluebook 19th Ed.

Shefali Prasad, Devising a Legal Mechanism in India for Resolving Cross-Border Insolvency, 1 IJBLS 1, 1-13 (2020).