Introduction to Prospect Legal

Prospect Legal is a leading legal firm with 15+ years of expertise in corporate and insolvency law. Our team specializes in handling complex cross-border insolvency cases, ensuring businesses and stakeholders navigate legal challenges efficiently. We assist clients in securing their rights, protecting assets, and complying with regulatory frameworks when dealing with insolvency across multiple jurisdictions.

Where You Can Find Remedies?

For cross-border insolvency cases, legal remedies are primarily available through NCLT (National Company Law Tribunal) under the Insolvency and Bankruptcy Code (IBC), 2016. Additionally, courts, international arbitration tribunals, and reciprocal enforcement mechanisms between nations play a crucial role.

If you are facing insolvency challenges across jurisdictions, contact Prospect Legal for expert consultation to explore your legal options and safeguard your interests.

📞 Call us at 7000-12-7225

Understanding the Cross-Border Insolvency Process

Cross-border insolvency can be categorized into two main processes:

1. Voluntary Process (Initiated by individuals/companies)

• A debtor company voluntarily applies for insolvency resolution.
• Requests recognition of foreign insolvency proceedings in India or abroad.
• Negotiation with creditors for a settlement plan.

2. Compulsory Process (Court-mandated or legally enforced)

• Creditors or regulatory bodies initiate insolvency proceedings.
• Foreign creditors seek legal intervention to recover dues.
• NCLT orders asset distribution as per insolvency laws.

Legal Protection Under Section 234 & 235 of IBC, 2016

The Insolvency and Bankruptcy Code (IBC), 2016 provides key provisions to address cross-border insolvency.

Section 234: Agreements with Foreign Countries

• Enables the Indian government to enter into agreements with foreign countries for enforcing insolvency provisions.
• Facilitates cooperation between Indian and foreign courts to recognize insolvency proceedings.

Section 235: Letter of Request to a Foreign Court

• Allows NCLT to send a request to a foreign court for evidence or action in cross-border insolvency matters.
• Empowers Indian authorities to seek recognition of Indian insolvency proceedings abroad.
• Helps in the coordination of legal actions across jurisdictions.

When Can a Claim Be Filed?

A cross-border insolvency claim can be filed when:

• A company has operations, creditors, or assets in multiple jurisdictions.
• Foreign insolvency proceedings impact Indian stakeholders.
• Indian creditors seek recognition of claims in foreign courts.

Powers of the Adjudicating Authority

NCLT has the authority to:

• Recognize and enforce foreign insolvency proceedings in India.
• Facilitate coordination between Indian and foreign courts.
• Protect creditors’ rights through restructuring, liquidation, or asset recovery.

Process of Remedy Through Prospect Legal

Step 1: Initial Consultation & Risk Assessment

• Case Analysis: Assess the legal standing and complexity of the cross-border insolvency case.
• Jurisdiction Review: Identify applicable laws and jurisdictions involved.
• Stakeholder Communication: Engage with debtors, creditors, and regulatory bodies.
• Strategy Formulation: Develop a customized legal approach for resolution.

Step 2: Legal Documentation & Filing

• Petition Drafting: Prepare and file insolvency applications before NCLT.
• Foreign Court Recognition: Assist in obtaining recognition of Indian proceedings abroad.
• Debt Restructuring Agreements: Draft agreements for settlements and asset protection.
• Regulatory Compliance: Ensure compliance with cross-border legal frameworks.

Step 3: Compliance & Negotiations

• Inter-Court Coordination: Facilitate cooperation between Indian and foreign tribunals.
• Creditor Negotiations: Engage with domestic and international creditors for resolution.
• Asset Recovery Strategies: Implement legal measures to reclaim assets.
• Ongoing Legal Support: Provide continued assistance throughout proceedings.

Step 4: Resolution & Final Actions

• Court Approvals: Secure final verdicts and approvals from adjudicating authorities.
• Debt Settlements: Ensure equitable distribution of recovered assets.
• Exit Strategies: Develop business continuity or liquidation plans.
• Post-Insolvency Compliance: Assist with regulatory filings and legal obligations.

📞 Call us at 7000-12-7225