PIL.OT / DEVELOPMENT
The Gibbs principle paradox: Will an Indian discharge be recognised abroad?
Development summary
Mihir N Singh and Tia Sikka examine the inadequacy of Sections 234 and 235 of India's Insolvency and Bankruptcy Code 2016 (IBC) in cross-border insolvency. These provisions rely on bilateral agreements and ad hoc letters of request, but have proved largely ineffective because country-specific treaties are hard to negotiate and clear procedural rules on judicial cooperation and recognition of foreign proceedings are absent.