Examine whether the recommendations of the Insolvency Law Committee (ILS) on Cross-border insolvency are in line with the provisions set out in the UNCITRAL Model Law on Cross-border insolvency?

The Insolvency Law Committee (ILC) on Cross Boarder insolvency constituted by the Ministry of Corporate Affairs recommended certain modifications in the existing Insolvency and Bankruptcy Code, 2016 to match with the models of United Nations Commission on International Trade Law (UNCITRAL). The necessity of having Cross Border insolvency framework arises from the fact that many Indian companies have global presence and many foreign companies are operating in India. Inclusion of comprehensive legal laws dealing with cross border insolvency will boost greater confidence among foreign investors, adequate flexibility for seamless integration with the domestic insolvency law and a robust mechanism for international cooperation. The key recommendations of the ILC are as under: The recommendation will enable Indian companies having foreign assets to proceed and take advantage of the framework of UNCITRAL. The Committee recommended that the Model Law may be adopted initially on a reciprocity basis. Reciprocity indicates that a domestic court will recognize and enforce a foreign court's judgement only if the foreign country has adopted similar legislation to the domestic country. Access to foreign representatives- The Model Law allows foreign insolvency professionals and foreign creditors access to domestic courts to seek remedy directly. The model law will allow recognition of foreign proceedings and provides relief based on this recognition. The model law lays down the basic framework for cooperation between domestic and foreign courts and domestic and foreign insolvency professionals. The model provides for commencement of domestic insolvency proceedings, when a foreign insolvency proceeding has already commenced or vice versa. It also provides for coordination of two or more concurrent insolvency proceedings in different countries by encouraging cooperation between courts. Part Z of the recommendation provides for the adjudicating authority may refuse to take action under the Code if it is contrary to public policy. Thus, the recommendation of the Insolvency Law Committee (ILC) is completely on the lines of UNCITRAL.