Of late, Insolvency and Bankruptcy Code, 2016 has provisions to tackle the issue of Cross Border Insolvency. Justify the statement with any recent case law.

Insolvency & Bankruptcy Code, 2016 (IBC) has enabling provisions to consider the cases of Cross Border insolvency matters involving corporate persons in India and their counter parts in any foreign nation. Sections 234 and 235 of IBC make provisions to deal with cross border insolvencies. Section 234 of IBC empowers the Central Government to enter into agreements with other countries to deal with or resolve situations pertaining cross border insolvency. The current cross border insolvency framework in India is dependent on India entering bilateral agreements with other countries which is a long-drawn process requiring time consuming negotiations. Section 235 requires Adjudicating Authority to file Letter of request to court or authority of a country of competent for cross border insolvency as follows: Notwithstanding anything contained in this Code or any law for the time being in force if, in the course of insolvency resolution process, or liquidation or bankruptcy proceedings, as the case may be, under this Code, the resolution professional, liquidator or bankruptcy trustee, as the case may be, is of the opinion that assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor, are situated in a country outside India with which reciprocal arrangements have been made under section 234, he may make an application to the Adjudicating Authority that evidence or action relating to such assets is required in connection with such process or proceeding. The Adjudicating Authority on receipt of an application under sub-section (1) and, on being satisfied that evidence or action relating to assets under sub-section (1) is required in connection with insolvency resolution process or liquidation or bankruptcy proceeding, may issue a letter of request to a court or an authority of such country competent to deal with such request. Jet Airways (India) Ltd Vs State Bank of India & anr is the first case touching the realm of cross border insolvency. In the instant case, Jet Airways (India) Ltd was subjected to parallel insolvency proceedings in India as well as in Netherlands.