CNBC-TV18 has learnt that the Union Cabinet note on a framework for cross-border insolvencies is ready. The note has been prepared by the Ministry of Corporate Affairs (MCA), and will soon be taken up by the cabinet. Once the cabinet gives the green signal, it will then be tabled in the form of a bill — an amendment bill — in the monsoon session of Parliament.
As to the shape of the framework, government sources indicate that the Centre will be looking at treaties between various countries. And under these treaties, there will be an effort made to streamline parallel processes. So the insolvency for a company can begin here in India, as well as in another jurisdiction — this framework will try to align both these parallel proceedings.
However, importantly, one indication is that the NCLT and the NCLAT are likely to be not bound by orders that are issued in another jurisdiction. Expect more clarity to emerge once the cabinet takes up the note for discussion.