The Ministry of Corporate Affairs, in exercise of the powers conferred by Section 14(3)(a) of the Insolvency and Bankruptcy Code, 2016 (IBC), issued a notification dated October 3, 2023, inter alia, notifying that the provisions of section 14(1) of the IBC shall not apply to transactions, arrangements or agreements, under the convention and the protocol, relating to aircraft, aircraft engines, airframes and helicopters.
The notification was issued:
- in view of the protocols adopted by the International Civil Aviation Organization and the International Institute for the unification of Private Law in the convention on International Interests in Mobile Equipment particularly on matters specific to aircraft equipment; and
- fulfilment of India’s obligation of being a signatory to the convention and the protocol by depositing with the International Institute for the Unification of Private Law.
It may be noted that the said notification shall be applicable prospectively, therefore, shall not benefit either the Corporate Debtor undergoing insolvency process or the claimants that seek to rely upon this notification to bypass the moratorium imposed under section 14(1) of the IBC.