CROSS-BORDER INSOLVENCY UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 A FRAMEWORK IN PRACTICE OR A VACUUM IN DISGUISE? LESSONS FROM JET AIRWAYS
CROSS-BORDER INSOLVENCY UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 A FRAMEWORK IN PRACTICE OR A VACUUM IN DISGUISE? LESSONS FROM JET AIRWAYS Anannya Deepak, B.A LLB (H), 10TH Semester, Student (India) Download Manuscript doi.org/10.70183/lijdlr.2026.v04.115 In an increasingly globalised economy, corporate entities operate across multiple jurisdictions, rendering traditional territorial approaches to insolvency inadequate. This paper critically examines the cross-border insolvency framework—or the lack thereof—under the Insolvency and Bankruptcy Code, 2016 (“Code” or “IBC”), with particular reference to Sections 234 and 235, which remain the sole statutory provisions addressing transnational insolvency coordination in India. Through a detailed analysis of Jet Airways (India) Ltd. v. State Bank of India, this paper demonstrates how Indian courts have attempted to bridge legislative gaps through judicial innovation, facilitating cross-border coordination in the absence of a comprehensive statutory mechanism. The case serves as both a proof of concept for informal cooperation and a cautionary illustration of the fragility inherent in ad hoc arrangements. The paper further situates India’s position within the broader international framework by examining the UNCITRAL Model Law on Cross-Border Insolvency, highlighting the divergence between India’s current approach and established global best practices. Drawing on comparative analysis, supporting jurisprudence, and the recommendations of the Insolvency Law Committee, it argues that India must transition from judicial improvisation to statutory certainty.