The Reciprocity and COMI Conundrum in Draft Z: A Comparative Analysis with the USA and Brazil.

Abstract

This article analyses India’s proposed policy for cross-border insolvency, wherein it is said to adopt the UNCITRAL Model Law in the form of Draft Z. Since the current Insolvency and Bankruptcy Act, 2016 lacks provisions fostering the growth of cross-border insolvency in India, there is a need to implement the Draft Z. However, the said provision is not without its flaws. Therefore, to understand its limitations thoroughly, it becomes imperative that experiences of other nations are critically studied to conclude the length of their successes and failures. This article presents a comparative analysis of the cross-border insolvency provisions in the USA’s Chapter 15 and Brazil’s Chapter VI-A, particularly concerning the rule of reciprocity and the Centre of Main Interest (COMI). After examining the same, this article highlights drawbacks in the current proposed Draft Z and recommends changes regarding the status of the current IBC provisions dealing with cross-border tune with the international standard and provide a level-playing field for all stakeholders in such cases. insolvency, public policy exception and interpretation of key provisions under Draft Z. These suggestions may be incorporated to be more in tune with the international standard and provide a level-playing field for all stakeholders in such cases.