New Delhi, May 22 -- India's budget proposal in 2022 to promulgate a cross-border insolvency law remains unimplemented. The mechanism to implement it was recommended by the Insolvency Law Committee, which suggested adoption of the UNCITRAL Model Law on Cross-Border Insolvency (MLCBI), with a few tweaks, including the introduction of 'reciprocity' as a principle.

The reciprocity clause meant that Indian courts would only recognize and enforce decisions taken by foreign courts if those countries granted India similar rights. Most experts in India's insolvency ecosystem were concerned about this. Instead, they recommended that India adopt the MLCBI in full to ensure seamless cooperation in cases of cross-border insolvency.

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