Cross border insolvency framework must respect global laws without
overriding Indian jurisdiction
India must go in for a robust Cross-Border Insolvency framework
that strikes a feasible balance between the domestic and foreign jurisdictions,
former NCLAT Chairperson and former Supreme Court judge S J Mukhopadhaya has
said.
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, Mukhopadhaya said at an event on Cross Border Insolvency in the
capital on Saturday.
His remarks are significant as India is in the process of
finalising a framework for Cross Border Insolvency and is widely expected to
get an IBC amendment Act passed in Parliament when the new government assumes
office at the Centre post the general elections.
The event 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 Accounts of India (ICAI).
In addition to India, insolvency experts from the United Kingdom
and Singapore shared their views in the conference which was attended by IPs
from across the country.
Mukhopadhaya also emphasised the need to deliberate on how to deal
with foreign partner companies which are holding or subsidiary or partner
companies in a joint venture project in India.
Ashok Kumar Bhardwaj, Member (Judicial), NCLT, said There is
increasing emphasis on hybrid model of Cross-Border insolvency framework
wherein different jurisdictions have their laws and also have space for common
interest.
Sudhaker Shukla, Whole Time Member-IBBI, said, There exist wide
variations on interpretation and implementation of UNCITRAL Model of law. The
UNCITRAL law in Japan and South Korea are entirely different from those in the
UK and the USA . However, IBBI is trying to develop a framework on Cross-Border
Insolvency with a cautious approach and also simultaneously working on Group
Insolvency framework, he said.
Ashok Haldia, Chairman-IIIPI said that IIIPI has been proactively
engaged in capacity building and policy advocacy on various aspects of the
insolvency profession at all levels including as to how the law should be
interpreted and implemented.
We are working closely with the NCLT and RERA to enhance the
efficiency and efficacy of the insolvency process , he said.
www.thehindubusinessline.com
dt. 16.04.2024