The Ministry of Civil Aviation has sought stakeholders’ comments on the draft Protection and Enforcement of Interests in Aircraft Objects Bill, 2022.
The Bill implements the provisions of the Convention on International Interests in Mobile Equipment and Protocol on Matters Specific to Aircraft Equipment.
| Utility: UPSC, JPSC, BPSC Prelims & Mains Section: Polity (Governance) : Bills & Acts |
Key Points
- Once passed, the law will help international aircraft leasing companies to repossess and transfer planes out of India in case of a financial dispute with an Indian airline.
- The Convention on International Interests in Mobile Equipment and Protocol on Matters Specific to Aircraft Equipment, both were 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.
- 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.
Why such a policy?
- As per the ministry, the draft legislation is necessary because several Indian laws such as the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 are in conflict with the Cape Town Convention and Protocol.
- It says that Indian entities have also suffered as international financial institutions demand an implementing legislation.
