Lok Sabha Question No. 738 (UNSTARRED), answered on 2022-02-07
Subject: Cross-Border Insolvency Cases
Ministry: CORPORATE AFFAIRS
Asked by: Sudheer Gupta, Ravindra Kushawaha, Prataprao  Jadhav, Nama Nageswara Rao, Ravi Kishan Shukla, Sambhajirao Mane Dhairyasheel, Sanjay Sadashivrao Mandlik, Shrirang Appa Barne, Bidyut Baran Mahato

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## ANSWERED ON MONDAY THE 7 TH  FEBRUARY, 2022

## LOK SABHA UNSTARRED QUESTION NO. 738 MAGHA 18, 1943 (SAKA)

## CROSS-BORDER INSOLVENCY CASES QUESTION

## 738. SHRI SUDHEER GUPTA:

SHRI RAVINDRA KUSHWAHA:

SHRI PRATAPRAO JADHAV:

SHRI NAMA NAGESHWARA RAO:

SHRI RAVI KISHAN:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI SHRIRANG APPA BARNE:

SHRI BIDYUT BARAN MAHATO:

## Will the Minister of CORPORATE AFFAIRS

## be pleased to state:

- (a) whether the Government has recommended the exclusion of critical financial service providers such as banks and insurance companies from the applicability of cross-border insolvency provisions and if so, the details thereof;
- (b) whether the Government has floated any fresh draft rules to cater to cross-border insolvency cases;
- (c) if so, the details thereof along with the aims and objectives thereto;
- (d) whether the Government has sought any public comments on draft cross-border insolvency framework under IBC and if so, the details
- thereof;
- (e) if so, whether the Government has constituted any committee in this regard and if so, the details thereof; and
- (f) whether the committee has submitted its report to the Government and if so, the details in this regard?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT  CHARGE)  OF  THE  MINISTRY  OF  PLANNING;  AND MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS [RAO INDERJIT SINGH]

(a): The Insolvency Law Committee (ILC), which is a Standing Committee constituted  by  the  Government  to  review  the  implementation  of  the Insolvency and Bankruptcy Code, 2016 (IBC), had, in its October, 2018 report,  recommended  that  certain  entities  may  be  excluded  from applicability of proposed cross-border insolvency provisions under the IBC. The Cross-Border Insolvency Rules/ Regulations Committee (CBIRC), which was constituted in January, 2020 to recommend rules and regulations for cross-border insolvency framework, in its June, 2020 report, recommended that financial service providers and certain other entities as may be notified by the Central Government, may be excluded from the application of cross border insolvency provisions. (b) to (d):  Draft  legislative  framework  to  deal  with  cross-border insolvency matters under the IBC, on the basis of the United Nations Commission  on  International  Trade  Law  (UNCITRAL)  Model  Law  on Cross-Border  Insolvency,  1997,  was  first  placed  in  public  domain  to invite  suggestions  from  stakeholders  in  June,  2018.  Based  on  the examination  of  public  comments  so  received,  the ILC  made  its recommendations in its October, 2018 report suggesting adoption of the UNCITRAL Model Law with certain modifications necessary in the Indian context. Further, certain changes to this framework, based on recommendations of the CBIRC, were placed in public domain to invite comments from stakeholders in November, 2021. (e) and (f): As stated in (a) above, two Committees have examined the legislative  framework  to  deal  with  cross  border  insolvency  matters under the IBC. The two reports are available on the website of Ministry of Corporate Affairs and that of the Insolvency and Bankruptcy Board of

India.

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