IBC: UN model eyed for cross-border norms

IBC: UN model eyed for cross-border norms

News:

1. The government is looking at the possibility of adopting a United Nations legal model for cross-border insolvency cases.

Important facts:

2. It works on strengthening the insolvency resolution framework.

3. The Insolvency and Bankruptcy Code (IBC) has sections pertaining to cross-border insolvency matters but are yet to be made operational.

4. The existing Code provides for sections-234 and 235 — relating to cross-border insolvency, which allows the Centre to enter into an agreement with a foreign country for enforcing the provisions of the Code.

5. If UN model is adopted for cross-border insolvency matters, then section 234 and 235 could be dropped from the Code as they pertain to only bilateral pacts.