1. Why Enforcement Matters

If Jet Airways has aircraft in Amsterdam, or a Singapore holding company has bank account in Mumbai, which Court controls assets?

Two theories:

• Territoriality: Each country deals with assets within its territory.
• Universality: One main proceeding at Centre of Main Interests (COMI) controls worldwide.
• India follows Modified Universalism - Recognize foreign proceeding but protect local public policy and creditors.

2. Indian Statutory Framework - Before and After 2026

A. Old Framework - Sections 234 & 235 IBC - Dead Letter:

Sec 234: Central Govt may enter into bilateral agreements with foreign govt for enforcing IBC provisions. No treaty was ever signed in 9 years.

Sec 235: Adjudicating Authority (NCLT) may issue Letter of Request to foreign court to deal with assets of Corporate Debtor held abroad, if bilateral treaty exists.

Result: Both sections were never operationalised. Supreme Court and NCLAT said they cannot be used without treaty.

B. New Framework - Insolvency and Bankruptcy Code (Amendment) Act, 2026 - Received President assent 6 April 2026, many provisions effective 25 May 2026:

Amendment inserts Sec 240B & 240C - Enabling Provision.

Sec 240C: Empowers Central Govt to prescribe rules for administering cross-border insolvency covering:

• Recognition of foreign proceedings and foreign insolvency professionals
• Judicial cooperation and communication
• Offshore asset recovery and coordination of concurrent proceedings
• Reliefs available - stay of proceedings against debtor's assets, entrustment of assets to foreign RP, examination of witnesses.

As of today, Sec 240C is enabling, rules are still being drafted. Draft is based on UNCITRAL Model Law on Cross-Border Insolvency (1997) with modifications - it will adopt COMI concept but with public policy exception and reciprocity.

Until rules notified, enforcement continues via case law protocol and CPC.

3. How Foreign Orders Are Currently Enforced in India

There are 3 routes:

Route 1: Under CPC 1908

• Sec 13 CPC - Foreign judgment conclusive unless: not by competent court, not on merits, violates natural justice, obtained by fraud, or violates Indian law.
• Sec 44A CPC - Enforcement of foreign decrees from reciprocating territories (UK, Singapore, UAE, etc.) - Can be executed as if Indian District Court decree. Insolvency orders are NOT money decrees, so Sec 44A rarely applies.

Route 2: Under IBC - Through Protocol (Jet Airways Model)
Foreign representative cannot directly become RP in India. Must apply to NCLT for cooperation protocol.

Route 3: Common Law Recognition
Indian court may grant assistance to foreign liquidator to collect assets, if it doesn't offend Indian public policy.

4. Leading Case Laws

A. INDIA - The Jet Airways Trilogy - The Foundation of Indian Cross-Border Insolvency

1. State Bank of India vs Jet Airways】 (India) Ltd - NCLT Mumbai CP 2205/MB/2019, 20 June 2019
SBI led consortium filed Sec 7 in India. Dutch Court had already appointed bankruptcy trustee and declared Jet bankrupt in Netherlands. Dutch trustee sought to intervene and halt Indian CIRP claiming COMI is Netherlands.
NCLT Held: Foreign courts cannot intervene or create parallel proceedings for Indian company. Jurisdiction lies where Registered Office is - India. No statutory provision allows recognition of Dutch order. Refused to stay Indian CIRP.

2. NCLAT Delhi Company Appeal (AT) (Insolvency) No. 707 of 2019 - 26 Sept 2019 - The Protocol Order
On appeal, NCLAT reversed rigid territorial approach. Created Cross-Border Insolvency Protocol between Indian RP (Ashish Chhawchharia) and Dutch Administrator.
Key holdings:

• Indian RP and Dutch trustee shall cooperate
• Offshore creditors claims to be collated
• Dutch trustee can participate in Indian CoC as observer
• Sale of aircraft in Netherlands to be coordinated, proceeds to be brought to India subject to Dutch law
• Protocol is substitute for law - first time modified universalism applied.

This is now the Jet Airways Protocol Model used in all subsequent cases.

3. SBI vs Jet Airways - Subsequent NCLT Order 2021
Approved resolution plan with specific clause that Dutch proceedings stand withdrawn post plan approval.

B. UK - The Battle Between Universality and Territoriality

4. Cambridge Gas Transportation Corp v Official Committee of Unsecured Creditors of Navigator Holdings Plc UKPC 26
Privy Council treated principle of universality as enough to support assistance to foreign liquidator. Lord Hoffmann held English court can assist foreign insolvency by doing whatever it could have done in domestic insolvency. High watermark of universalism.[2006]

5. Rubin v Eurofinance SA & New Cap Reinsurance Corp v Grant UKSC 46 - Overrules Cambridge Gas
UK Supreme Court landmark. US and Australian liquidators sought to enforce avoidance judgments against English defendants who had not submitted to foreign jurisdiction.
SC Held:

• There is no special rule for enforcement of orders made in foreign insolvency proceedings[2012]
• Ordinary conflict of laws applies - Foreign insolvency judgment can be enforced only if defendant was present/submitted to foreign jurisdiction
• Cambridge Gas wrongly decided
  Impact: A foreign avoidance order (e.g., US preference claim) cannot be enforced in UK unless usual jurisdiction tests met.

6. Singularis Holdings Ltd v PricewaterhouseCoopers UKPC 36
JPLs of Cayman company sought info from Bermuda auditors. Privy Council limited assistance - Common law assistance does not allow doing what court has no power to do domestically.[2014]

C. US - Chapter 15 - The Model India Wants

7. In re: Foreign Representative cases under 11 USC 1515
US Bankruptcy Code Chapter 15 adopts UNCITRAL Model Law. Foreign representative files petition for recognition. If COMI - grants automatic stay, entrusts assets. US courts have recognized Indian CIRP - e.g., In re: Jet Airways (India) Ltd, Bankruptcy Court S.D.N.Y. Case 19-11817 - US recognized Indian CIRP as foreign main proceeding and stayed US lawsuits.

Indian courts do not have reciprocal power yet.

D. Singapore - India Relevant

8. Re: Zetta Jet Pte Ltd SGHC 53
Singapore court recognized US Chapter 11 proceedings, applying Model Law. Important for Indian companies with Singapore assets.[2019]

5. How to Enforce a Foreign Insolvency Order in India TODAY - Practical Steps

Assume you have a US Chapter 11 order vesting Indian assets in purchaser.

File Application under Sec 60(5) IBC before NCLT where CD has registered office, seeking recognition as foreign proceeding and assistance. Annex:

• Certified copy of foreign order
• Affidavit of foreign RP showing COMI
• Translation

Pray for Protocol: Cite Jet Airways NCLAT judgment - request NCLT to approve protocol for cooperation with foreign court under inherent powers Rule 11 NCLT Rules.

Alternative - File Suit for Execution under CPC Sec 13/44A: If order is money decree from reciprocating territory, file execution petition in District Court. If non-reciprocating (US), file fresh suit on basis of foreign judgment.

Seek Interim Relief: Under Sec 235 Letter of Request (even without treaty, NCLT has used inherent powers) + Order 39 CPC - seek injunction restraining disposal of Indian assets.

Public Policy Check: Court will refuse if:

• Violates Indian public policy (e.g., US order extinguishing Indian workmen dues - violates Sec 53 IBC waterfall)
• Discriminates against Indian creditors
• Fraud

6. Enforcement of Indian IBC Order Abroad

Indian RP has no power to compel foreign court. Must apply under Sec 235 Letter of Request (post 2026 rules, under Sec 240C). Till then, file recognition petition in foreign court:

• In UK: Apply under Cross-Border Insolvency Regulations 2006 (CBIR) - Recognition of Indian CIRP as foreign proceeding.
• In US: File Chapter 15 petition - Indian RP recognized as foreign representative. In re Videocon (2022) - US court recognized Indian CIRP.

7. What Changes After 2026 Amendment Rules Are Notified?

Draft Rules (per LiveLaw analysis) propose:

• Recognition Types: Foreign Main (COMI) vs Foreign Non-Main (establishment)
• Automatic Relief for Main: Stay of suits, stay on transfer of assets in India
• Discretionary Relief: Entrustment of Indian assets to foreign RP, examination of witnesses
• Grounds to Refuse: Public policy, non-reciprocity for some countries
• Coordination: Mandatory cooperation between Indian and foreign IPs via protocols - Codifying Jet Airways model.

India is still not adopting Model Law wholesale - Government wants reciprocity and to protect jurisdiction over Indian companies.