REPORT OF CBIRC-II
ON GROUP INSOLVENCY

 

December, 2021

CROSS BORDER INSOLVENCY RULES/REGULATIONS COMMITTEE (CBIRC-II)

New Delhi, December 10,2021

To

Secretary to Government of India

Ministry of Corporate Affairs

‘A’ Wing, Shastri Bhawan

New Delhi – 110001

Dear Sir,

We have the privilege and honour to present the second part of the Committee’s Report to the Ministry of Corporate Affairs. The Cross-Border Insolvency Rules/Regulation Committee (CBIRC) which was constituted, vide office order No. 30/27/2018-Insolvency Section dated 23rd January, 2020, submitted first part of its report on the rules and regulatory framework for cross border insolvency on 15th June, 2020. On 21st February, 2020, the remit of CBIRC was expanded to analyse the UNCITRAL Modal Law on Enterprise Group Insolvency and to make recommendations governing the resolution of group enterprises for the purpose of the IBC.

2. The CBIRC has adopted a holistic methodology including internal meetings, engagement with stakeholders, examining past reports, global literature and best practices followed by other countries. The Committee, while its recommendations, has attempted a draft Part that may be inserted in the Code to enable implementation of a suitable group insolvency framework.

3. We thank you for providing us this opportunity to put our thoughts together for recommending group insolvency provisions under the Insolvency and Bankruptcy Code, 2016 (Code). We believe that the enactment and implementation of group insolvency provisions would minimize costs and maximize the value of entities involved.

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