Government of India

Ministry of Corporate Affairs

Insolvency Section File No. 30/27/2018

Dated: 20.06.2018

Public Notice

Government has taken initiative to introduce a chapter on Cross-Border Insolvency within the Insolvency & Bankruptcy Code, 2016 (the Code) to provide a comprehensive legal framework, considering the fact that corporates transact businesses in more than one jurisdiction and also have assets across many jurisdiction. Introductory note and draft chapter is given at Annexure-A.

Suggestions on the draft chapter on Cross Border Insolvency are invited from the stakeholders to further enhance the same and ensure that wider consultation/ views are incorporated. Suggestions in the format prescribed below may be mailed to the email id "[email protected]   till 30.06.2018:-

Sl. No.	Relevant clauses	Suggestions	Justifications	Name	Designation	Organization

(Saurabh Gautam)

Assistant Director

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Cross-border insolvency framework proposed: Model Law-based recognition, COMI rules, moratoriums and cooperation with foreign representatives. The draft introduces a Model Law-based cross-border insolvency chapter for corporate debtors, defining COMI presumptions, recognition procedures for foreign proceedings and representatives, documentary requirements and a time-bound recognition decision. Recognised foreign main proceedings may attract moratoria and specified reliefs to protect assets and creditor interests, while foreign representatives and creditors have prescribed access and participation rights subject to safeguards, exclusions for certain foreign tax and social security claims, public policy exceptions, cooperation mechanisms between authorities, and Central Government notification powers.