The Ministry of Corporate Affairs (MCA) has invited public comments on the proposed legal framework for cross-border insolvency under the Insolvency and Bankruptcy Code (IBC).

Suggestions and/or comments on the draft Part Z (recommended for incorporation in the IBC by the Insolvency Law Committee) and the modifications proposed must be submitted by December 15.

All suggestions, accompanied by a brief justification, must be submitted online at the specified weblink, the ministry said. It clarified that the suggestions should not be sent via email or as a hard copy.

Govt plans to enact cross-border insolvency framework in Winter Session

To usher in a legal framework for cross-border insolvency, the Centre is expected to introduce an insolvency amendment Bill in the coming winter session from November 29 to December 23.

Among the modifications proposed, the Centre wants to extend the provisions of cross-border insolvency beyond corporates to the personal guarantors of corporate debtors.

It also wants all benches of the National Company Law Tribunal (NCLT) and Debts Recovery Tribunals (DRT) to adjudicate applications under cross-border insolvency (draft Part Z). This would mean that cross-border proceedings for corporates with registrations in India would be dealt by the NCLT bench with jurisdiction over the registered office of the corporate debtor.

Fresh bids called for revival of Sical Logistics under IBC

It proposes that the principal bench of the NCLT should deal with the cross-border application pertaining to any person incorporated with limited liability outside India. For Part III debtors (including personal guarantors to corporate debtors), it proposes that all benches of the DRT may deal with cross-border application, in line with the jurisdiction under section 179 of the IBC.