OFAC sanction, insolvency and Indian tribunals: Can foreign regulatory restrictions defeat IBC proceeding?
The Insolvency and Bankruptcy Code, 2016 (“IBC”) was enacted to address insolvency and facilitate corporate resolution, not to adjudicate complex commercial disputes or operate as a debt recovery tool. However, as Indian companies increasingly operate within global corporate structures, insolvency tribunals are required to grapple with issues that extend far beyond traditional debtor-creditor relationships. One…