UNCITRAL Model Law is binding on member countries but at the best obiter dicta for Courts of the member countries dealing in disputes relating to cross border insolvency and international trade. Elucidate.

Obiter dicta refer to opinion expressed in a Court by the Judge but not essentially to the decision and hence not binding. Thus the statement emphasises to adopt the law as legislation in member countries but not binding on Courts unless incorporated in a legislation. Framing of UNCITRAL Model Law was necessitated due to certain reasons: global expansion of trade and investment; inadequate and inharmonious legal approaches due to differences in regulatory platform across countries that hampers the rescue of financially troubled businesses and impede the protection of the assets of the insolvent debtor against dissipation; increasing incidences of cross border insolvency due to integration of trade across countries; National insolvency laws of different countries have by and large not kept pace with the trend. Main thrust of Model Law is to achieve fair and efficient administration of cross border insolvencies protecting the interest of every stakeholder.