By S&S Co. Advocates & Solicitors · Published 29 September 2026 · Informational content, not legal advice: see our disclaimer
Overview
A guide for a creditor, insolvency professional or corporate debtor with assets or creditors outside India, explaining the current, limited state of cross-border insolvency recognition under the IBC and the proposed adoption of the UNCITRAL Model Law framework.
What You Need to Know
- The IBC in its present form contains only two limited cross-border insolvency provisions: Section 234, enabling the Central Government to enter bilateral agreements with other countries, and Section 235, allowing an adjudicating authority to issue letters of request to a foreign court or authority. Neither of which has been substantially operationalised through notified bilateral agreements to date.
- In the absence of a comprehensive cross-border framework, Indian tribunals have had to address foreign-element insolvency issues on an ad hoc basis, including questions of recognising a foreign insolvency proceeding's effect on Indian assets, or coordinating with a foreign liquidator or administrator, without a settled statutory mechanism comparable to that available in jurisdictions that have adopted the UNCITRAL Model Law on Cross-Border Insolvency.
- A dedicated framework based on the UNCITRAL Model Law: providing for recognition of foreign proceedings as 'main' or 'non-main', access for foreign representatives to Indian courts, and cooperation and communication protocols between courts across jurisdictions. Has been under consideration by the Ministry of Corporate Affairs and an Insolvency Law Committee, but has not yet been enacted as a substantive amendment to the IBC.
- Until such a framework is enacted, a corporate debtor or creditor dealing with cross-border insolvency issues in India should expect to rely on general principles of private international law, existing letters-of-request mechanisms, and any applicable bilateral arrangement, rather than a codified recognition-and-cooperation regime.
- Businesses with significant cross-border exposure: foreign subsidiaries, foreign creditors, or assets located abroad. Should factor this gap into their insolvency risk planning, since recognition of an Indian CIRP or liquidation order by a foreign court (or vice versa) cannot currently be assumed to follow an automatic, predictable statutory pathway.
Frequently Asked Questions
Has India adopted the UNCITRAL Model Law on Cross-Border Insolvency?
Not yet as an operative statutory framework: a Model Law-based cross-border insolvency chapter has been under policy consideration for some years, but it has not been enacted as an amendment to the IBC as of the time of writing.
What cross-border tools does the IBC currently provide?
Sections 234 and 235 of the IBC, which respectively enable bilateral agreements between India and other countries, and letters of request to a foreign court or authority. Neither has been substantially operationalised through notified agreements to date.
What should a business with cross-border exposure do in the interim?
Plan on the basis that recognition between Indian and foreign insolvency proceedings is not automatic, and seek specific advice on the available private international law tools, letters-of-request practice, and any applicable bilateral arrangement for the relevant foreign jurisdiction.
References & Further Reading
This guide references the following statutes, rules and sources, cross-checked at the time of writing.
- Sections 234 and 235 IBC as the current, limited cross-border insolvency provisions: well-settled statutory position, confirmed via Bar and Bench and IBC Laws commentary at research time
- Status of the proposed UNCITRAL Model Law-based cross-border insolvency framework under consideration by the Ministry of Corporate Affairs/Insolvency Law Committee: this is a developing policy area: verify the current legislative status at drafting time, since a Bill or notification may have been introduced or enacted after this guide's publication
- See also our IBC & Insolvency Notable Judgments and Legal Updates: IBC & Insolvency archive.