MCA released report and draft rules/regulation based on the report submitted by the Cross-Border Insolvency Rules/Regulations Committee (CBIRC) constituted by the MCA in January, 2020. CBIRC was mandated to propose the regulatory framework that would enable the implementation of Part Z of the IBC proposed by the Insolvency Law Committee Report (ILC Report). The ILC Report recommended the adoption of the UNCITRAL Model Law on Cross-Border Insolvency as a part of the Insolvency and Bankruptcy Code, 2016 (hereafter, “IBC”), with certain modifications. It also submitted a draft law, referred to as “Part Z”, which was to be incorporated as a separate Part of the IBC. Part Z is intended to be the cross border framework of the IBC, which will govern all applications seeking recognition of foreign insolvency proceedings as well as applications seeking co-operation in such proceedings from the NCLT.

Suggestions are also invited from the public on the draft Part Z by 15th December 2021.