Jet case brings to the fore problems in cross-border insolvency resolution

Foreign creditors are permitted to participate in Indian insolvency proceedings

One among the many issues that the insolvency proceeding of Jet Airways has brought to light is the added complexity when cross-border issues surface.  Nearly a month before the National Company Law Tribunal (NCLT) admitted the insolvency application filed by the State Bank of India-led consortium of banks, the Noord-Holland District Court declared Jet Airways bankrupt based on the insolvency laws of the Netherlands. The NCLT initially refused to entertain the intervention application of the Dutch administrator and, interestingly, declared the order of the Dutch court to be void. However, on appeal, the National Company Law Appellate Tribunal (NCLAT) has