Rana Navneet Roy, Satyansh Gupta
This research explores the intricate landscape of insolvency laws in India, particularly focusing on the period preceding the enactment of the Insolvency and Bankruptcy Code (IBC) in 2016. It delves into the shortcomings of previous legislations like the SICA Act and examines other measures such as the SARFAESI Act and Corporate Debt Recovery mechanisms introduced by the RBI to combat NPAs and revive distressed assets. The study highlights the challenges faced by financial and operational creditors prior to the IBC's implementation and elucidates the motivations behind the IBC's creation. It evaluates the IBC's provisions regarding cross-border insolvency, notably Sec. 234 and 235, and their limitations, emphasizing the need for a more robust framework. The research also discusses the global context, UNICITRAL connections, and international agreements relevant to India's cross-border insolvency challenges. It further explores gaps in the existing IBC, particularly in the context of foreign debt recovery and individual bankruptcy. The study includes insights from notable cases like Jet Airways and analyzes the viability of Draft Part Z for crossborder insolvency, providing a comprehensive overview of India's evolving insolvency landscape and the critical issues it faces.