CROSS-BORDER INSOLVENCY IN INDIA: FROM LEGAL UNCERTAINTY TO LEGAL CLARITY

Globalisation has turned many businesses into multinational enterprises, with assets, creditors, and operations spread across jurisdictions. That expansion has created a practical legal question: when a company fails in one country but owns property, owes debt, or has pending proceedings in another, which court should lead the process? In India, the answer is still not fully settled, and that is precisely why cross-border insolvency remains one of the most important unfinished areas of insolvency reform. India’s Insolvency and Bankruptcy Code, 2016, transformed domestic insolvency by promoting time-bound resolution and value maximisation. But the Code still does not contain a complete framework for insolvencies involving foreign jurisdictions, leaving courts, insolvency professionals, and creditors to navigate uncertainty through limited provisions and case-by-case innovation.