Draft Protection And Enforcement Of Interests In Aircraft Objects Bill, 2022:
The Ministry of Civil Aviation has sought stakeholders’ comments on the draft Protection and Enforcement of Interests in Aircraft Objects Bill, 2022.
Highlights of the Bill:
- The Bill implements the provisions of the Convention on International Interests in Mobile Equipment and Protocol on Matters Specific to Aircraft Equipment which was adopted at a conference in Cape Town in 2001.
- India acceded to the two instruments in 2008.
- These provide default remedies for the creditor and create a legal regime for disputes.
- Once passed, the law will help international aircraft leasing companies to repossess and transfer planes out of India incase of a financial dispute with an Indian airline at a time many regional airlines have been refused planes on rent.
- The proposed law provides remedies such as repossession of an aircraft object, or its sale or lease or collection of income from its use as well as de-registration and export of planes.
- It also suggests remedies pending final adjudication of a claim as well as safeguards a debtor’s claim during insolvency proceedings against its Indian buyer.