Home Insolvency & Bankruptcy Moratorium Under IBC Inapplicable To Agreements Under Convention & Protocol Relating To Aircraft, Aircraft Engines, Airframes And Helicopters

Moratorium Under IBC Inapplicable To Agreements Under Convention & Protocol Relating To Aircraft, Aircraft Engines, Airframes And Helicopters

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Moratorium Under IBC Inapplicable To Agreements Under Convention & Protocol Relating To Aircraft, Aircraft Engines, Airframes And Helicopters

The Ministry of Company Affairs (“MCA”), Authorities of India, has issued a notification dated 03.10.2023 revealed within the Gazette of India (Extraordinary), intimating that Part 14(1) of the Insolvency and Chapter Code, 2016 (“IBC”) can be inapplicable to transactions, preparations or agreements, underneath the Conference and the Protocol referring to plane, plane engines, airframes and helicopters.

Transient Background

On 16.11.2001, the Conference on Worldwide Pursuits in Cellular Gear (“Conference”) and the Protocol to the Conference on Worldwide Pursuits in Cellular Gear on Issues particular to Plane Gear (“Protocol”) had been adopted underneath the joint auspices of Worldwide Civil Aviation Group and the Worldwide Institute for the Unification of Personal Legislation concluded at Cape City.

India is a signatory to the Conference and the Protocol and has acceded to the identical by depositing the devices of accession on 31.03.2008 with the Worldwide Institute for the Unification of Personal Legislation.

Notification issued by MCA

Part 14(1) of IBC imposes a moratorium with respect to the entity (Company Debtor) which has been admitted into Company Insolvency Decision Course of (CIRP) underneath the IBC. Imposition of moratorium ensures worth maximization of the Company Debtor through the CIRP, by prohibiting any type of restoration, establishment of fits, continuation of proceedings, switch/alienation of property, enforcement of safety curiosity, restoration of property et al towards the Company Debtor.

In view of the Conference and Protocol, the Central Authorities, in train of the powers underneath Part 14(3)(a) of IBC, has notified that moratorium underneath Part 14(1) of IBC shall not apply to transactions, preparations or agreements, underneath the Conference and the Protocol, referring to plane, plane engines, airframes and helicopters.

“Now, due to this fact, in train of the powers conferred by clause (a) of sub-section (3) of part 14 of the Insolvency and Chapter Code, 2016 (31 of 2016), the Central Authorities hereby notifies that the provisions of sub-section (1) of part 14 of the Insolvency and Chapter Code, 2016 (31 of 2016), shall not apply to transactions, preparations or agreements, underneath the Conference and the Protocol, referring to plane, plane engines, airframes and helicopters.”

Ref: F. No. Insol-30/9/2020-Insolvency-MCA

Click on Right here To Learn/Obtain The Notification

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