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India is set to establish a dedicated bench within the National Company Law Tribunal (NCLT) to handle cross-border insolvency cases, aiming to expedite resolution timelines and improve coordination with foreign jurisdictions. The move follows recent amendments to the Insolvency and Bankruptcy Code (IBC), which introduce a framework based on a modified UN model law. The specialised bench will comprise trained members equipped to manage complex international insolvency matters involving overseas assets and creditors. The initiative seeks to address delays seen in past high-profile cases and enhance recovery prospects, while strengthening India's insolvency ecosystem in line with global practices.
India is planning to establish a dedicated bench within the National Company Law Tribunal (NCLT) to handle cross-border insolvency cases, as part of efforts to improve resolution timelines and align the country�s insolvency framework with global standards. Advertisement
The proposed development, outlined in the past week, will come into effect once new rules under the Insolvency and Bankruptcy Code (IBC) are notified. The specialised bench is expected to comprise members trained in handling cross-border insolvency matters, reflecting the increasing complexity of cases involving overseas assets and multiple jurisdictions.
The initiative is linked to recent amendments to the IBC, which incorporate a cross-border insolvency framework based on a modified version of the United Nations Commission on International Trade Law (UNCITRAL) model law. The framework is intended to facilitate cooperation between Indian courts and foreign jurisdictions, enabling creditors to access assets located abroad and ensuring more coordinated resolution processes.
Officials indicated that the need for a dedicated bench has emerged from challenges encountered in previous insolvency proceedings involving companies with international operations. Cases such as those involving Amtek Auto, Videocon Industries, Essar Steel and Jet Airways highlighted delays arising from jurisdictional complexities and difficulties in coordinating with foreign courts.
The specialised NCLT bench is expected to address these issues by ensuring faster adjudication and improved handling of cross-border claims. According to officials familiar with the development, the move is aimed at preventing situations where proceedings in foreign jurisdictions progress more quickly than in India, thereby affecting recovery timelines and value realisation.
The Ministry of Corporate Affairs is expected to frame detailed rules governing cross-border insolvency, which will be placed before Parliament as part of the regulatory process. The framework is also expected to introduce structured mechanisms for recognising foreign insolvency proceedings and facilitating cooperation between courts.
The National Company Law Tribunal, established under the Companies Act, serves as the adjudicating authority for insolvency cases under the IBC, handling corporate insolvency resolution processes and related matters.
The introduction of a specialised bench reflects a broader effort to strengthen India�s insolvency ecosystem by reducing delays, improving recovery rates and enhancing investor confidence. As cross-border investments and multinational corporate structures become more common, the ability to efficiently resolve insolvency cases involving multiple jurisdictions is expected to play a critical role in the effectiveness of the country�s bankruptcy framework.
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