Multi-National Companies (MNCs) can operate their business in different countries because of availability of talented manpower, skilled workforce, infrastructural facilities as well as government support. Many such compa

With the globalization, the business at international level is increasing day by day and also the presence of the companies in different countries which are having different regulations relating the business and insolvency process in respect of Cross Border Insolvency. The law adopted by 44 countries is UNCITRAL Model of Cross Border Insolvency, 1997 and the same has been recommended by the Insolvency Law Committee to be adopted as Model Law in case of Cross Border Insolvency in India. The statement that Insolvency and Bankruptcy Code, 2016 (the Code) do not deal with the Cross Border Insolvency is incorrect since Section 234 and 235 of the Code deal with Cross Border Insolvency. Section 234 of the Code empowers the Central Government to enter into an agreement with other countries to resolve situations pertaining to cross border insolvency and provides that: The Central Government may enter into an agreement with the Government of any country outside India for enforcing the provisions of this Code. [Section 234(1)] The Central Government may, by notification in the Official Gazette, direct that the application of provisions of this Code in relation to assets or property of corporate debtor or debtor, including a personal guarantor of a corporate debtor, as the case may be, situated at any place in a country outside India with which reciprocal arrangements have been made, shall be subject to such conditions as may be specified. [Section 234(2)]. Section 235 of the Code lays down that (1) Notwithstanding anything contained in this Code or any law for the time being in force it, 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. (2) 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. Considering the above, the statement made by the lawyer is not correct.