Part V — Cross-Border Insolvency and Miscellaneous

The current (non-UNCITRAL) status of cross-border insolvency recognition and other Part V provisions.

Cross-border insolvency — current status

India has not yet adopted the UNCITRAL Model Law on Cross-Border Insolvency (a draft framework has been under consultation since 2018) — Sections 234 and 235 of the Code (bilateral-agreement and letter-of-request mechanisms) exist on paper but remain largely unused pending notification and reciprocal-country agreements; practically, cross-border recognition currently proceeds through NCLT's inherent powers on a case-by-case basis (as in the Jet Airways case, which improvised a cooperation protocol with a Dutch bankruptcy trustee).

Limitation Act interface

The Limitation Act, 1963 applies to applications before NCLT/NCLAT (Section 238A) — the Supreme Court (B.K. Educational Services) confirmed Article 137's three-year residuary limitation period applies to Section 7/9 applications, running from the date of default, not from the date the Code came into force.

Overriding effect (Section 238)

The Code has effect notwithstanding anything inconsistent in any other law for the time being in force — this overriding-effect provision is what lets IBC proceedings take precedence over, for example, SARFAESI enforcement or company-law winding-up petitions once CIRP is admitted, subject to the specific carve-outs courts have read into it for certain regulatory actions (e.g. SEBI, PMLA attachment in some circumstances).

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