Paper Title
The oretical Aspects of the Cross Border Insolvency Vis-À-Vis Uncitral
Abstract
The phenomenal increase in the globalization has paved the way for various corporate entities to operate business in different countries. International integration amongst countries had been proved useful for accelerating the economic growth. When there is a corporate failure it subverts the economic system at global level. Corporate entity’s state of indebtedness does not restrict to one country due to involvement of assets and creditors from various countries. Often domestic countries do not recognize foreign court jurisdiction, proceedings, decisions and its enforcement and recognition of foreign creditors’ right. Hence conflict of laws in case insolvency proceeding result into deprivation of assets and a loss of business. The most important question arises in such circumstances is the number of proceedings that should be commenced and which country’s law should govern such proceedings. A number of theories addressing cross border insolvency have been advanced in order to the correct reinforcement of transnational insolvency laws but due to their drawback and uncertainties they have led to many adverse effects on the economy. In the present article author has tried to examine the various theories governing cross border insolvency providing different approaches for the adoption of the cross border insolvency law.
Keywords- Cross Border Insolvency, UNCITRAL Model Law, Universalism, Territorialism, Modified Universalism.