Bill gives legal force to 2001 aircraft convention

It aims to protect the rights of creditors and debtors involved in aircraft transactions, such as leasing or security agreements, by establishing a uniform legal framework for these interests.

Who it concerns: The law affects creditors (such as lessors, conditional sellers, or chargees) and debtors (such as lessees, conditional buyers, or chargors) involved in agreements regarding aircraft objects. It also applies to the Directorate General of Civil Aviation (as the registry authority) and High Courts with territorial jurisdiction.

What the bill does

• The Convention and Protocol have the force of law in India regarding aircraft objects, subject to declarations made by India.
• The Directorate General of Civil Aviation is designated as the 'registry authority' and may issue directions for implementation.
• Debtors are required to maintain and submit records of dues to the registry authority.
• Creditors must notify the registry authority of a default before they can exercise remedies under the Convention or Protocol.
• Specific provisions for remedies on insolvency apply if the debtor is an Indian entity or has their principal place of business in India, and the interest is registered.
• Provisions for de-registration and export requests apply, subject to the Bharatiya Vayuyan Adhiniyam, 2024.
• High Courts having territorial jurisdiction are the relevant courts for specific matters under Article 53 of the Convention.
• The Central Government has the power to make rules, make or withdraw declarations under the Convention, and remove difficulties in implementation (within three years of commencement).

Also in the document

• The Bill states that its provisions prevail over any other law in case of inconsistency.
• The Bill does not affect the rights of the Central Government or public service providers to arrest or detain an aircraft object for amounts due to them.
• Rules made under the Act must be laid before both Houses of Parliament for a total period of thirty days.