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Date: 03-Oct-2023 Category: Extra Ordinary State: Union Government Country: India

Insolvency and Bankruptcy Code 2016

Issued by Ministry of Corporate Affairs · Not Applicable

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Executive Summary & Key Takeaways

What it means

  • This notification, issued by the Ministry of Corporate Affairs, specifies that certain provisions of the Insolvency and Bankruptcy Code (IBC), 2016 will not apply to transactions, arrangements, or agreements related to aircraft, aircraft engines, airframes, and helicopters that fall under the Convention on International Interests in Mobile Equipment and its protocol.

Key Changes

  • Section 14(1) of the Insolvency and Bankruptcy Code (IBC), 2016 will not be applicable to transactions, arrangements or agreements related to aircraft, aircraft engines, airframes and helicopters under the Cape Town Convention and its protocol.
  • The Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment were adopted on November 16, 2001.
  • India acceded to the Convention and Protocol on March 31, 2008, by depositing the instruments of accession with the International Institute for the Unification of Private Law.

Impact Analysis

Aircraft Lessors and Financiers

  • Action Item: Review existing lease and financing agreements to ensure alignment with the Cape Town Convention and its protocol. Update internal risk assessment models to reflect reduced risk associated with aircraft financing in India.

Airlines

  • Action Item: Factor potential changes in financing and leasing costs into long-term fleet planning and financial projections.

Insolvency Professionals

  • Action Item: Update knowledge base on the applicability of IBC provisions in the context of the Cape Town Convention. Seek expert legal advice when dealing with aviation-related insolvency cases.

Creditors

  • Action Item: Reassess the risk involved in lending to aviation companies.

Key Entities Referenced

Ministry of Corporate Affairs: The issuing authority for this notification. Insolvency and Bankruptcy Code, 2016: The primary legislation governing insolvency and bankruptcy proceedings in India. Section 14 deals with moratorium. Convention on International Interests in Mobile Equipment: An international treaty that provides a legal framework for the creation and enforcement of security interests in mobile equipment, including aircraft. Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment: A protocol to the Convention that specifically addresses issues related to aircraft equipment. International Civil Aviation Organization (ICAO): A specialized agency of the United Nations that promotes the safe and orderly development of international civil aviation. International Institute for the Unification of Private Law (UNIDROIT): An independent intergovernmental organization that prepares studies and drafts modern and harmonized rules to modernize, harmonize and co-ordinate private law.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-04102023-249132 CG-DxLx-xEG-I0D4H1x0x2x0 23-249132 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 4150] नई दिल्ली, मगं लवार, अक्त बू र 3, 2023/आज‍व न 11, 1945 No. 4150] NEW DELHI, TUESDAY, OCTOBER 3, 2023/ASVINA 11, 1945 कारपोरेट कार् यमत्रं ालर् अजधसचू ना नई दिल्ली, 3 अक् तूबर, 2023 का.आ. 4321(अ).—मोबाइल उपस्ट्कर म ें अतं रायष्ट्रीर् जितों पर अजभसमर् और वार्ुर्ान उपस्ट्कर के जवजनर्ियष्ट जवषर्ों पर मोबाइल उपस्ट्कर म ें अंतरायष्ट्रीर् जितों पर अजभसमर् के प्रोटोकॉल को 16 नवंबर, 2001 को केप टाउन म ें संपन्न हुए, अंतरायष्ट्रीर् नागररक जवमानन संगठन और स्ट्वीर् जवजध एकीकरण के जलए अतं राष्ट्रय ीर् संस्ट्थान के संर्ुक्त तत्वावधान म ें अंगीकार दकर्ा गर्ा था; और, भारत न े 31.03.2008 को स्ट्वीर् जवजध एकीकरण के जलए अंतरायष्ट्रीर् संस्ट्थान के पास अजभजमलन पत्र िमा करके अजभसमर् और प्रोटोकॉल को िस्ट्ताक्षरी के रूप में स्ट्वीकार दकर्ा िै; अतः, अब केंद्रीर् सरकार, दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 14 की उप- धारा (3) के खडं (क) द्वारा प्रित्त िजक्तर्ों का प्रर्ोग करत े हुए, अजधसूजचत करती ि ै दक दिवाला और िोधन अक्षमता संजिता, 2016 (2016 का 31) की धारा 14 की उप-धारा (1) के उपबंध, वार्ुर्ान, वार्ुर्ान इंिन, वार्ुर्ान ढांचा और िले ीकॉप्टरों से संबंजधत अजभसमर् तथा प्रोटोकोल के अधीन सव्यं विारों, व्यवस्ट्थाओं र्ा करारों पर लागू निीं िोंगे। [फा.सं. इंसोल-30/9/2020-इंसोल्वेंसी-एमसीए] अनीता िाि आकेल्ला, संर्ुक्त सजचव 6270 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 3rd October, 2023 S.O. 4321(E).—WHEREAS, the Convention on International Interests in Mobile Equipment and the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment were adopted under the joint auspices of International Civil Aviation Organization and the International Institute for the Unification of Private Law concluded at Cape Town on 16th November, 2001; AND WHEREAS, India, being a signatory to and having acceded the Convention and the Protocol by depositing with the International Institute for the Unification of Private Law the instruments of accession on 31.03.2008; Now, therefore, in exercise of the powers conferred by clause (a) of sub-section (3) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby notifies that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters. [F. No. Insol-30/9/2020-Insolvency-MCA] ANITA SHAH AKELLA, Jt. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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