MCA planning a comprehensive IBC framework to address cross boarded insolvency issues

New Delhi, 6 Jan (KNN) As per an official source, the Government is expected to plan a comprehensive framework on cross-border insolvency and make various changes to the corporate insolvency resolution process (CIRP) to expedite the process.

The proposal for a comprehensive framework on cross-border insolvency will be soon be finalized by the Ministry of Corporate Affairs (MCA).

The reports in the media citing official sources surmised that a pragmatic approach was being adopted in this case.

After the framework is done by MCA, it will be sent to the legislation for examining the Bill and for final approval it will be sent to the Union Cabinet.

No timeline has been predicted for this development to take place, however it is likely that government may push for the enactment of the IBC amendment bill in upcoming budget session.

The UN legal model observed in US, UK, Japan and Singapore is likely to be adopted by India or the cross border insolvency will be patterned around it.