Cross-Border Insolvency Framework Must Adapt to Country-Specific Needs, Says IBBI Member

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The Insolvency and Bankruptcy Board of India (IBBI) Whole Time Member, Sudhaker Shukla, emphasized the importance of considering country-specific circumstances when developing a cross-border insolvency framework to promote effective resolution of insolvency cases. Speaking at the 7th Foundation Day of the Indian Institute of Insolvency Professionals of ICAI (IIIPI), Shukla highlighted the need to learn from the best practices of foreign countries while contextualizing them to the Indian context.

Learning from Best Practices and Contextualization

Shukla stressed that best practices from one country cannot be directly implemented in another due to significant deviations from the UNCITRAL (United Nations Commission on International Trade Law) model in implementing cross-border insolvency frameworks. He explained that each regime has carved out exceptions based on its specific requirements.

Challenges of Digital Assets and Cryptocurrencies

Shukla also urged Insolvency Professionals (IPs) to prepare for upcoming challenges, such as digital assets and cryptocurrencies, to ensure that the Indian insolvency ecosystem remains robust. He suggested that IPs use their expertise to recommend appropriate measures for vulnerable corporates to expedite the resolution process.

Capacity Building and Adaptability

Ashok Haldia, Chairman of the IIIPI-Board, highlighted the various capacity-building activities of IIIPI. He emphasized that the Insolvency and Bankruptcy Code (IBC) is a dynamic law that will evolve with changes in the national and global economies, as well as technological advancements. Haldia expressed hope that frameworks on group insolvency, cross-border insolvency, individual insolvency, and other areas will be developed soon.

About IIIPI

The Indian Institute of Insolvency Professionals (IIIPI), promoted by the Institute of Chartered Accountants of India (ICAI), operates under the supervision of IBBI. Its primary focus is on enhancing professionals' capabilities in the field of insolvency and providing valuable policy recommendations to regulators.