BEWARE OF FAKE INSTITUTES WITH SIMILAR NAMES. blank    blank

UNCITRAL Model for Cross-Border Insolvency

  Mar 07, 2022

UNCITRAL Model for Cross-Border Insolvency

Q. Why is this in news?
A. The Economic Survey 2021-22 has called for a standardized framework for cross-border insolvency as the Insolvency and Bankruptcy Code (IBC) at present does not have an instrument to restructure firms involving cross-border jurisdictions.

Q. What is the Insolvency and Bankruptcy Code (IBC)?

A.

Q. What are the Cross-border insolvency proceedings?
A. 

  1. Location of such a company’s foreign assets
  2. Identification of creditors and their claims
  3. Establishing payment towards claims and
  4. Process for coordination between courts in different countries

Q. What is the Current status of foreign stakeholders and courts in other jurisdictions under IBC?

A. 

Q. What is the UNCITRAL Model?

A.

Q. What is its key provisions?

A. 

This law works on four main principles: accessrecognitioncooperation and coordination:

  1. Direct access to foreign insolvency professionals and foreign creditors to participate in or commence domestic insolvency proceedings against a defaulting debtor.
  2. Recognition of foreign proceedings & provision of remedies.
  3. Cooperation between domestic and foreign courts & domestic and foreign insolvency practitioners.
  4. Coordination between two or more concurrent insolvency proceedings in different countries: The main proceeding is determined by the concept of Centre of Main Interest (COMI).

Q. What are the Implications for India?
A. 

Q. How is IBC different from the model law?

A.