Efforts on to develop cross-border insolvency framework, say experts

Efforts are going on to develop a cross-border insolvency framework with a cautious approach and such a framework should respect the laws of other countries without superseding Indian law, according to experts.

Former NCLAT (National Company Law Appellate Tribunal) Chairperson S J Mukhopadhaya emphasised the importance of having a robust cross-border insolvency framework in the country.

"We will have to respect the law of other countries, but it does not mean superseding our law. The dominance should be of our law in our jurisdiction," he was quoted as saying in a release.

He was speaking at the conference on 'Cross-Border and Group Insolvency in India: Challenges and Opportunities' in the national capital on Saturday.

The conference was organised by the Indian Institute of Insolvency Professionals of ICAI (IIIPI) jointly with the Foreign, Commonwealth & Development Office-United Kingdom (UKFCDO), the Insolvency and Bankruptcy Board of India (IBBI) and the Institute of Chartered Accountants of India (ICAI).

IBBI Whole-Time Member Sudhaker Shukla said efforts are on to develop a cross-border insolvency framework with a cautious approach as well as working on the group insolvency framework.

According to the release, National Company Law Tribunal (NCLT) Member (Judicial) Ashok Kumar Bhardwaj said there is an increasing emphasis on a hybrid model of cross border insolvency framework wherein different jurisdictions have their laws and also have space for common interest.

IIIPI Chairman Ashok Haldia said IIIPI has been proactively engaged in capacity building and policy advocacy on various aspects of the insolvency profession.