Aircraft Objects Interests Bill Introduced
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: The Cape Town Convention lacked full statutory backing in India, forcing lessors to rely on piecemeal notifications and drawn-out court battles. NOW: The 2025 Bill explicitly gives the Convention and Aircraft Protocol the force of law, prevailing over inconsistent domestic laws.
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BEFORE: Aircraft under lease were vulnerable to prolonged detention during corporate insolvency resolution processes under the IBC. NOW: The Bill aligns with international protocols, allowing creditors to repossess and deregister aircraft at the end of a two-month waiting period after an insolvency event.
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BEFORE: India lacked a centralized domestic registry for tracking lease dues and creditor notifications required by international treaties. NOW: Debtors must maintain records of dues, and the DGCA is empowered as the central authority to receive default notifications and facilitate deregistration.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to the Protection of Interests in Aircraft Objects Bill, 2025, which of the following statements is/are correct? 1. It aims to give statutory effect to the Cape Town Convention, empowering the Directorate General of Civil Aviation (DGCA) to facilitate aircraft repossession. 2. The provisions of this Bill are subservient to the Insolvency and Bankruptcy Code (IBC) in cases of airline bankruptcy.