act 017 of 2025 : The Protection of Interests in Aircraft Objects Act, 2025

Section 1.Short title and commencement.

(1) This Act may be called the Protection of Interests in Aircraft Objects Act, 2025.

(2) It shall come into force on such date¹ as the Central Government may, by notification in the Official Gazette, appoint.

1. 1st day of May, 2025, vide notification No. S.O. 1937 (E), dated 30th day of April, 2025, see Gazette of India, Extraordinary, Part II, sec. 3 (ii).

Section 2.Definitions.

(1) In this Act, unless the context otherwise requires,---

(a) "agreement" shall have the meaning assigned to it in Article 1(a) of the Convention;

(b) "aircraft" shall have the meaning assigned to it in Article I (2)(a) of the Protocol;

(d) "Article" means an Article of the Convention or the Protocol;

(e) "Convention" means the Convention on International Interests in Mobile Equipment signed at Cape Town on 16th November, 2001, as set out in the First Schedule to this Act;

(f) "creditor" shall have the meaning assigned to it in Article 1(i) of the Convention;

(g) "debtor" shall have the meaning assigned to it in Article 1(j) of the Convention;

(h) "declaration" means a declaration made by India under the Convention or the Protocol, as set out in the Second Schedule to this Act;

(i) "declared default" means the date on which the registry authority is notified by the creditor of the occurrence of default;

(j) "international interest" shall have the meaning assigned to it in Article 1(o) of the Convention;

(k) "prescribed" means prescribed by rules made under this Act;

(l) "Protocol" means the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment signed at Cape Town on 16th November, 2001, as set out in the Third Schedule to this Act;

(m) "registry authority" means the Directorate General of Civil Aviation constituted under section 3 of the Bharatiya Vayuyan Adhiniyam, 2024 (16 of 2024).

(2) The words and expressions used and not defined in this Act, but defined in the Convention or the Protocol or the regulations made thereunder, shall have the meanings respectively assigned to them in the Convention, Protocol or regulations made thereunder.

Section 3.Application of Convention and Protocol in India.

Subject to the provisions of this Act, the Convention and Protocol shall have the force of law in India, in respect of the aircraft objects and in accordance with the declarations deposited by India.

Section 4.Power of registry authority to issue directions.

The registry authority may issue necessary directions, for implementation of the provisions of the Convention and Protocol, including the provisions given force of law under section 3, in such manner as may be prescribed.

Section 5.Obligation of debtor and creditor to an agreement.

(1) A debtor shall maintain and submit to the registry authority, records of dues arising from, related to or owed in regard to the ownership or use by the owner or operator of the aircraft object, in such form and manner as may be prescribed.

(2) A creditor shall not be entitled to exercise any remedy under the Convention or Protocol unless such creditor declares the occurrence of default by notifying the registry authority, in such form and manner as may be prescribed.

Section 6.Remedies on insolvency.

The provisions of Article XI of the Protocol, subject to the declaration deposited by India, shall apply, mutatis mutandis, for remedies on insolvency under any law for the time being in force:

Provided that---

(a) the debtor of the agreement is a---

(i) body corporate or firm, incorporated or registered in India; or

(ii) person, domiciled in or has his principal place of business in India;

(b) the international interest of the agreement has been registered in accordance with the Convention and Protocol; and

Section 7.De-registration and export request authorisation.

Subject to the provisions of the Bharatiya Vayuyan Adhiniyam, 2024 (16 of 2024), or any rules made thereunder, the provisions of Article XIII of the Protocol shall apply to the de-registration and export request.

Section 8.Jurisdiction.

Notwithstanding anything in any other law for the time being in force, the High Court having territorial jurisdiction shall be the relevant court for the purposes of Article 53 of the Convention.

Section 9.Provisions of Act to have overriding effect.

(1) In the case of any inconsistency between a provision of this Act and any other law for the time being in force, the provisions of this Act shall prevail to the extent of such inconsistency.

(2) Save as otherwise provided in this Act, the provisions of this Act shall be in addition to, and not in derogation of any other law for the time being in force.

(3) The provisions of this Act or the Convention or the Protocol shall not affect the rights of the Central Government or any entity thereof, or other provider of public services in India, or any intergovernmental organisation in which India is a member, to arrest or detain an aircraft object under any law for the time being in force, for payment of any amount due to the Government of India or any such entity or provider of public services or organisation, directly relating to the service or services provided by it in respect of that aircraft objects.

Section 10.Power of Central Government to make rules.

(1) The Central Government may, by notification in the Official Gazette, make rules, as may be considered necessary and expedient, for carrying out the provisions of this Act or implementation of the provisions of the Convention or Protocol.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---

(a) manner to issue directions under section 4;

(b) form and manner under sub-sections (1) and (2) of section 5.

(3) The power to make rules under this section is subject to the condition of the rules being made after previous publication:

Provided that the Central Government may, in the public interest, by order in writing, dispense with the condition of previous publication in any case.

(4) Every rule made under this Act shall be laid, as soon as may be, after it is made before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section 11.Power of Central Government in respect of declarations.

(1) The Central Government may make, amend or withdraw any declaration, or any subsequent declaration in accordance with the provisions of the Convention or Protocol.

(2) The Central Government, to give effect to any declaration or subsequent declaration made, amended or withdrawn under the Convention or the Protocol, may, by notification in the Official Gazette, amend the Second Schedule to this Act.

Section 12.Removal of difficulties.

(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a period of three years from the date of commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.