India plans NCLT bench for cross-border insolvency under U.N. model
India is planning to set up a dedicated bench at the National Company Law Tribunal (NCLT) just for cross-border insolvency cases.
Thanks to recent changes in the Insolvency and Bankruptcy Code, these cases should now move faster, especially when assets or companies are spread across different countries.
The proposed framework is based on a U.N. model, making it simpler for creditors to recover money from abroad and helping Indian courts work better with their international counterparts.
Trained NCLT bench to speed recoveries
Before this, cross-border insolvency relied on slow bilateral agreements that often dragged things out.
The proposed NCLT bench will be staffed by members trained in cross-border insolvency resolution and following global best practices (like those used in over 50 other jurisdictions), experts say India's process will be much more efficient.
"A special bench will result in faster resolution of cross-border insolvency cases. This will brighten the chances of recovery for creditors as well," said Yogendra Aldak.
The Ministry of Corporate Affairs will begin framing the detailed rules soon, which will be laid before each House of Parliament for oversight.