Cross-Border Insolvency Framework Should Consider Country-Specific Issues: IBBI Whole-Time Member

Cross-border insolvency framework should take into account country-specific circumstances to promote effective resolution of insolvency cases, Insolvency, and Bankruptcy Board of India (IBBI) Whole Time Member Sudhaker Shukla on Wednesday said.

He emphasised on the need for learning from the best practices of foreign countries and contextualisation of those. 

Addressing the Insolvency Professionals (IPs) on the occasion of the 7th Foundation Day of the Indian Institute of Insolvency Professionals of ICAI (IIIPI), Shukla said recent studies have shown that cross-border insolvency may not yield the desired results without a group insolvency framework. 

"Best practices of one country can't exactly be implemented in another. There have been large deviations from the UNCITRAL (United Nations Commission on International Trade Law) model in implementing Cross-Border Insolvency Framework from one regime to another wherein each and every regime has carved out exceptions as per their requirements," Shukla said. 

He asked the IPs (Insolvency Professionals) to be ready for various upcoming challenges like digital assets, and cryptocurrencies to ensure that the Indian insolvency ecosystem continues to excel. 

Also, he suggested that the IPs should use their expertise in recommending appropriate measures for vulnerable corporates in expediting the resolution process.

Ashok Haldia, Chairman, of the IIIPI-Board, highlighted various capacity-building activities of IIIPI, stating that IBC is a very dynamic law and will change with the changing horizons of the national economy, global economy, and technology.

IPs need to change, adopt, and adapt accordingly. 

He expressed hope that frameworks on group insolvency, cross-border insolvency, individual insolvency, and other areas will come soon.

The Indian Institute of Insolvency Professionals (IIIPI), promoted by the Institute of Chartered Accountants of India (ICAI), operates under the supervision of IBBI.

Its primary focus is on enhancing professionals' capabilities in the field of insolvency and providing valuable policy recommendations to regulators.