Article · Insolvency & Restructuring · International Law
Harmonizing Cross-Border Insolvency: Institutional Readiness and Creditor Priority Under the Proposed UNCITRAL Adaptation
Abstract
This article critically assesses the draft framework adapting the UNCITRAL Model Law on Cross-Border Insolvency for Indian jurisprudence, examining the principles governing Centre of Main Interest (COMI) determination under Section 234 of the Insolvency and Bankruptcy Code, 2016. The article identifies structural tensions between recognition of foreign proceedings and domestic creditor protection imperatives embedded in the IBC, proposing a modified recognition doctrine that preserves domestic priority hierarchies while enabling streamlined multinational restructuring. Through analysis of recent NCLT precedents and comparative examination of UK and Singapore recognition regimes, the article argues that India requires a calibrated COMI presumption rule that accounts for its distinct creditor composition and public policy constraints.
I. Introduction
The proliferation of multinational enterprises with assets, liabilities, and creditors across multiple jurisdictions has rendered purely domestic insolvency law inadequate as a primary governance mechanism for distressed enterprise resolution. India's Insolvency and Bankruptcy Code, 2016, while representing a landmark reform of Indian insolvency law, remains primarily a domestic instrument, with cross-border dimensions addressed through the yet-to-be-notified Chapter VII provisions and bilateral agreements under Section 234.
The full text of this article is published in the Journal of Corporate and Financial Laws, Vol. 1, Issue 1 (2026), pp. 39–72. Requests for copies may be directed to submissions.jcfl@institution.ac.in.