Insolvency and Bankruptcy - Law and Practice · Cross Border Insolvency (Elective 7.5)

Cross Border Insolvency Cases and Concurrent Proceedings in India

Updated 11 October 2026 · Fact-checked

Cross border insolvency arises when a debtor has assets or creditors in more than one country, so proceedings may run in several places at once. Under the IBC, Sections 234 and 235 allow reciprocal arrangements and letters of request. Cases like Jet Airways show courts trying to coordinate parallel proceedings. Answer by stating the facts, the provision and a conclusion.

Understand Cross Border Insolvency Cases and Concurrent Proceedings

A cross border insolvency happens when the debtor has assets, creditors or operations in more than one country. A company may be insolvent in India but own aircraft, bank balances or subsidiaries abroad. Each country has its own law and its own courts.

The main problem is concurrent proceedings: insolvency cases for the same debtor, or the same group, running in two or more countries at the same time. This can cause conflicting orders, a race by creditors to seize assets, higher costs and unequal treatment of creditors.

India's IBC deals with this only in a limited way. Section 234 lets the Central Government enter into an agreement with a foreign government to enforce the Code. It can also notify that the Code applies to assets abroad, subject to conditions, where reciprocal arrangements exist. Section 235 lets a resolution professional, liquidator or bankruptcy trustee apply to the Adjudicating Authority when he believes assets are situated in a country with which arrangements have been made under Section 234. The Adjudicating Authority, if satisfied that evidence or action relating to those assets is required, may issue a letter of request to a competent court or authority of that country.

The Jet Airways matter is the case students most often search. Jet Airways (India) Ltd went into CIRP in India, and a Dutch bankruptcy court also opened insolvency proceedings against it in the Netherlands. The NCLAT considered how the two proceedings could be coordinated and approved a cooperation protocol between the Indian resolution professional and the Dutch administrator. Treat this as an example of court-to-court and professional-to-professional cooperation in the absence of a full statutory framework. In the exam, state the case only as far as you are sure of it.

Group insolvency is a related problem: several companies of one corporate group become insolvent together. Approaches include running separate proceedings, coordinating them procedurally, or treating the group as one pool of assets (substantive consolidation). The Code has no express group insolvency provisions. Indian tribunals have dealt with it case by case. The UNCITRAL approach encourages cooperation between courts and insolvency representatives in different countries.

Key rules to remember

Section 234(1): Central Government may enter into an agreement with a foreign government for enforcing the Code; This is the base for reciprocal arrangements.
Section 234(2): Notification: Code applies to assets abroad in a reciprocal country, subject to specified conditions; Applies to assets of the corporate debtor or debtor, including a personal guarantor of a corporate debtor.
Section 235(1): RP / liquidator / bankruptcy trustee believes assets are in a country with Section 234 arrangements → applies to Adjudicating Authority; The application says evidence or action relating to such assets is required in the process or proceeding.
Section 235(2): Adjudicating Authority satisfied → may issue letter of request to competent foreign court or authority; The word is 'may'. It is discretionary, not automatic.
Concurrent proceedings: Same debtor or group + insolvency cases in 2 or more countries at the same time; Needs coordination to avoid conflict and unequal treatment of creditors.

How to solve Cross Border Insolvency Cases and Concurrent Proceedings questions

Use this method for any case-based question on cross border insolvency, Jet Airways style facts or group insolvency.

1Identify the facts: the debtor, where it is insolvent, and where its assets, creditors or group companies are located.
2Spot the issue: concurrent proceedings, foreign assets, or group insolvency.
3State the provision: Section 234 for agreements and notification, Section 235 for letters of request.
4Check conditions: is there a country with reciprocal arrangements under Section 234? Who is applying, and is the process CIRP, liquidation or bankruptcy?
5Apply to the facts: say who applies, to whom, and what the Adjudicating Authority must be satisfied about.
6Add the practical position: cooperation protocols between the professionals and courts, as in Jet Airways, and consolidation or coordination for groups.
7Conclude clearly in one or two lines, noting where the Code is silent.

Quickest way: Four-line answer frame

When to use it: When you have limited time and the question asks you to advise or explain.

Issue: name the cross border or concurrent proceedings problem in one line.
Law: Section 234 (arrangement) then Section 235 (application and letter of request).
Application: link each condition to the facts given.
Conclusion: state the outcome and mention coordination or protocol, since the Code has no full framework.

Common mistakes in Cross Border Insolvency Cases and Concurrent Proceedings

Saying the IBC adopts the UNCITRAL Model Law.
Students mix up the proposals with the law in force.
Fix: Write that the Code has only Sections 234 and 235, and that the Model Law approach was proposed, not enacted in the Code text.
Saying a letter of request can be sent to any country.
Students skip the condition in the section.
Fix: Always state that the country must have reciprocal arrangements under Section 234.
Saying the resolution professional issues the letter of request.
The roles of applicant and issuing authority get confused.
Fix: The RP, liquidator or bankruptcy trustee applies. The Adjudicating Authority issues, if satisfied.
Treating the Adjudicating Authority's power as mandatory.
Students ignore the word 'may'.
Fix: Say it may issue the letter once it is satisfied that evidence or action is required.
Stating details of Jet Airways that you are unsure of.
Students try to show memory of figures and dates.
Fix: Stick to the core point: parallel Indian and Dutch proceedings and a cooperation protocol approved by the NCLAT. Avoid doubtful dates and amounts.
Claiming the Code has express group insolvency rules.
Students assume consolidation is statutory.
Fix: Say the Code has no express provisions and that tribunals have dealt with group matters case by case.

Worked examples

Example 1

A corporate debtor under CIRP in India owns an aircraft parked in a country that has reciprocal arrangements with India under Section 234. The resolution professional needs to take action over it. Advise on the procedure.

Show the solution

Facts: CIRP is on in India. An asset is located in a country with Section 234 reciprocal arrangements.
Provision: Section 235(1) lets the RP apply to the Adjudicating Authority if he believes assets are in such a country and evidence or action relating to them is required.
Application: the RP files an application before the NCLT stating why evidence or action is required in the CIRP.
Section 235(2): if satisfied, the Adjudicating Authority may issue a letter of request to a competent court or authority of that country.
Practical point: the foreign court then deals with the request under its own law.

Answer: The RP must apply to the NCLT under Section 235(1). If the NCLT is satisfied that evidence or action regarding the aircraft is required for the CIRP, it may issue a letter of request to the competent foreign court or authority under Section 235(2). The RP cannot approach the foreign court directly under this section.

Example 2

Explain the problem of concurrent proceedings with reference to the Jet Airways matter and state how it was handled.

Show the solution

Meaning: concurrent proceedings are insolvency cases against the same debtor in two or more countries at the same time.
Facts: Jet Airways was in CIRP in India and insolvency proceedings were also opened in the Netherlands.
Problem: conflicting orders, competing claims over assets and unequal treatment of creditors.
Handling: the NCLAT considered coordination and approved a cooperation protocol between the Indian resolution professional and the Dutch administrator.
Legal position: Sections 234 and 235 give only a limited framework, so cooperation depended on court-approved arrangements.
Conclusion: the case shows the need for a fuller framework.

Answer: Concurrent proceedings arise when one debtor faces insolvency cases in several countries. In Jet Airways, parallel Indian and Dutch proceedings were coordinated through a cooperation protocol approved by the NCLAT. Because Sections 234 and 235 are limited, such cooperation relies on judicial and professional coordination.

Exam tips

Write the provision number first. Sections 234 and 235 are the only direct cross border sections in the Code.
In case-based questions, check whether a Section 234 reciprocal arrangement is mentioned in the facts.
Use Jet Airways as an example of coordination. Keep to points you are sure of and skip doubtful details.
For group insolvency, say the Code has no express provisions, then describe the approaches.
Since the paper is open book, mark Sections 234 and 235 in your copy of the Code so you can quote the exact words.

Practice questions from Cross Border Insolvency (Elective 7.5)

Cross Border Insolvency Cases and Concurrent Proceedings: frequently asked questions

What is the Jet Airways cross border insolvency case?

Jet Airways was in CIRP in India while insolvency proceedings were also started in the Netherlands. The NCLAT considered how to coordinate them and approved a cooperation protocol between the professionals. It is cited as an example of handling concurrent proceedings.

Does the IBC have a full cross border insolvency framework?

No. The Code has only Sections 234 and 235, which cover agreements with foreign countries and letters of request. A fuller framework based on the UNCITRAL Model Law has been proposed but is not part of the Code text.

What are concurrent insolvency proceedings?

They are insolvency proceedings against the same debtor, or the same group, in two or more countries at the same time. They need coordination to avoid conflicting orders and unfair treatment of creditors.

What is group insolvency?

It is the insolvency of several related companies in one corporate group. The Code has no express provisions for it, so approaches such as coordination or consolidation have been considered case by case.