Difference between assets under section 14 and section 18 of the ibc
Answers
The Ministry of Corporate Affairs, Government of India have released the draft with respect to provisions to be introduced as Chapter for Cross Border Insolvency under the present Insolvency and Bankruptcy Code 2016 (Code). These guidelines are based on the UNCITRAL Model Law. The same was introduced keeping in view the need of such provisions separately available under the Code for ease and reference of Creditor both domestic and foreign to enforce their right over assets of Corporate Debtor situated overseas or in case of foreign proceedings to recognize such insolvency proceedings in India over asset s in India. Further, at times due to foreign proceedings and moratorium it is hard for creditor to enforce its right under domestic proceedings against Corporate Debtor with available options but the proposed provisions once enforced the moratorium under foreign proceedings will not bar commencement of domestic proceedings