India may go in for simultaneous introduction of cross border insolvency and group insolvency frameworks, Sudhaker Shukla, Whole Time Member of IBBI has indicated.
This is however subject to necessary approvals coming for such an approach, Shukla said at an event to mark the 7th Foundation Day of Indian Institute of Insolvency Professionals of ICAI (IIIPI) in the capital.
“Both can be rolled out simultaneously if approvals come through. Increasingly, we realise that without group insolvency the aspect of cross insolvency will not work at all. So perhaps group insolvency needs priority to cross border. That wisdom is there,” Shukla said.
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Shukla’s remarks are significant as international bodies had earlier recommended that India can go ahead and introduce cross border insolvency framework without having a group insolvency framework in place.
Shukla also said that India is now confident to say what kind of regime the country would be having under cross border insolvency framework moving forward. “We are much more informed than earlier,” he added.
“Best practices of one country can’t be exactly implemented in another regime. There have been large deviations from 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.
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Shukla asked the insolvency professionals (IPs) to be ready for various upcoming challenges like Digital Assets, Cryptocurrencies, Cape Town Convention, etc., to ensure that Indian insolvency ecosystem continues to excel. He also suggested that the IPs should use their expertise in recommending appropriate measures for vulnerable corporates in expediting the resolution process.
Ashok Haldia, Chairman, 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, technology. IPs need to change, adopt and adapt accordingly.
He appreciated the progressive approach of IBBI and expressed the hope that frameworks on group insolvency, cross-border insolvency, individual insolvency and other areas will come soon.