Public comments are invited by the Ministry of Corporate Affairs on the proposed legal framework for cross-border insolvency under the Insolvency and Bankruptcy Code (IBC). Any 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.

The ministry announced that all suggestions, accompanied by a brief justification to be submitted online at the specified web link, defining that the suggestions should not be sent via email or as a hard copy. The Centre is expected to present an insolvency amendment Bill for cross-border insolvency in the upcoming winter session from November 29 to December 23. Among the intended modifications, the centre aspires to increase the provisions of cross-border insolvency beyond corporates to the personal guarantors of corporate debtors. It 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 so that the cross-border proceedings for corporates with registrations in India would be dealt with by the NCLT bench with jurisdiction over the registered office of the corporate debtor.

It intends that the principal bench of the NCLT should deal with the cross-border application of any person incorporated with limited liability outside India. For Part III debtors such as personal guarantors to corporate debtors, the centre intends that all benches of the DRT may deal with the cross-border application, following the jurisdiction under section 179 of the IBC.