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Informist, Tuesday, Apr. 1, 2025

NEW DELHI – The Rajya Sabha on Tuesday passed the Protection of Interests in Aircraft Objects Bill, 2025, which seeks to give legal effect to international agreements in their application in India and provide for protection of interests in aircraft objects. While responding to a discussion in the Upper House, Civil Aviation Minister Kinjarapu Rammohan Naidu said the Bill would lead to security for the overall aviation market. The minister also said the Bill would give a push to the leasing industry.

"With the bringing of this Bill, definitely it is going to create a lot more clarity. We hope this is going to give a lot of push for the leasing industry, which is the need of the hour. There is an immediate need for this Bill to be there in the industry," he said.

The Bill will give legal effect to 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. India had acceded to these in 2008. 

"The Convention and Protocol aim to establish a uniform international legal framework for securing and enforcing rights in high-value mobile equipment, such as aircraft, airframes, engines, and helicopters, by facilitating asset-based financing, reducing creditor risk, and ensuring legal predictability in cases of default or insolvency," the bill states.

The Bill confers power upon the Directorate General of Civil Aviation to function as a registry authority for the implementation of the Convention and the Protocol. The bill makes it mandatory for debtors and creditors to notify the registry before exercising any remedy in case of default. It also provide several remedies to creditors, including the right to take back possession of the asset within a period of two calendar months or a period mutually agreed upon, whichever is earlier.

The bill was introduced in the Rajya Sabha on Feb. 10.  End

Reported by Kuldeep Singh

Edited by Avishek Dutta

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