Govt likely to tweak IBC for cross-border cases, Bill after elections

For now, cross-border insolvency can be enforced only if India enters bilateral treaties with foreign governments, said an official at the Ministry of Corporate Affairs

The government is planning to promulgate an Ordinance amending the Insolvency and Bankruptcy Code (IBC) and adding a chapter on cross-border insolvency. This would give comfort to foreign investors in India and vice-versa.
 
A source in the government said, “We plan to get a Cabinet nod for this soon.” The Ordinance will be based on the UNCITRAL model law for cross-border insolvency.
 
Now, only the next government will introduce a Bill for this in Parliament. Lok Sabha elections are supposed to be held within the next two months.
 
A cross-border insolvency law empowers foreign creditors get money