RESEARCH PROPOSAL

Subject: Corporate Law-II

Topic: Cross Border Insolvency.
Submitted By: Raj Vardhan Singh. (1635)
ABSTRACT
Cross Border Insolvency regulates the treatment of financially distressed debtors where such debtors
have assets or creditors in more than one country. A cross border insolvency law helps in providing
effective mechanism for dealing with cases when a company in financial distress has assets, business
operations or creditors in more than one country. India has emerged as a global business hub which has
fostered the need for creating a stronger mechanism to resolve international creditor-debtor relationship.
Presently, cross border insolvency has no clear legal framework in India. Section 234 and 235 of the code
deals with cross border insolvency in a cursory manner, empowering the government to make treaties
and further empowering the adjudicating authority under the code. The issues streaming out are complex
in nature and to provide lenders of their rights and their enforcement, cross border insolvency is the need
of the hour. The present paper will discuss the complexities of cross-border insolvency in the Indian
context. Further, it will trace the origin of the concept of cross border insolvency with the broad principles
laid down in the UNCITRAL model law. The paper will analyse the various theories related to cross
border insolvency and will also deal with situation wherein, insolvent entities might have substantial
assets outside of its Centre of main interest (COMI). Finally, Gibbs rule will be interpreted in light of the
principle of IBC which focuses on a shift from existing ‘Debtor in control’ to a ‘creditor in control’
theory.

RESEARCH METHODOLOGY
For the project research, it will be based upon the doctrinal method of research.
CHAPTERISATION
1. INTRODUCTION.
2. THE LEGAL THEORIES.
3. CURRENT LEGAL FRAMEWORK IN INDIA.
4. THE UNCITRAL MODEL LAW ON CROSS BORDER INSOLVENCY WITH ANALYSIS OF
THE DRAFT CHAPTER.
5. RECOMMENDATION BY THE INSOLVENCY LAW COMMITTEE, OCTOBER 2019.
6. THE JET AIRWAYS CASE.
 7. CONCLUSION.
BIBLIOGRAPHY.
1. Chakrabarti, A.M., Taxmann’s Company Law, Volume 1, Taxmann Allied Services Pvt Limited.
2. Datey, V.S., Taxmann’s Business and Corporate Laws, 4th Edition, Taxmann Allied Services
Private Limited.
3. Datta, Datta On The Company Law, Eastern Law House, Calcutta.
4. Detailed Analysis & Commentary on the Companies (Amendment) Act 2000, Snow White Pub-
lications Pvt Ltd, First Edition 2000.
5. Ghosh, P.K. & V. Balachandran, Company Law and Practice, Sultan Chand & Sons, New Delhi,
Fourth Edition 1989