New Delhi, April 1 (PTI) Rajya Sabha on Tuesday passed the protection of interests in the Aircraft Objects Act 2025, which aims to apply for certain international agreements in its application to India.
Replying to discussions about the bill, Civil Aviation Minister Kinjarapu Rammohan Naidu said the legislation would create a lot of safety for lessors and lessees and the overall aviation market, as there is a lot of chaos in the area. It’s a grey area for some time.
“With this bill being introduced, there will certainly be more clarity. We hope this will provide a lot of effort for the rental industry, which is an hour’s need. This bill needs to be present in the industry right away,” he said.
The bill aims to have legal implications on certain international agreements it applies to India, including agreements regarding international interests in mobile devices (also known as the Capetown Convention of 2001) and the Convention on International Interest in Mobile Devices for Aircraft Equipment Specific Matters. India joined these in 2008.
The bill states that before any remedies are exercised, creditors must notify the Civil Aviation Administration (DGCA) of the occurrence of the default.
In the event of a default, it will give creditors certain remedies, including the right to recover possession of assets within two months, or a period of mutual agreement, whichever is earlier.
“This is a very important bill that the industry needs today. It will change the aeronautical landscape of the country,” said the aviation minister.
The bill was launched in the House of Lords on February 10 this year.
“The whole reason we propose this is to give legal force to the Capetown Convention and Agreement. If you see most, besides giving legal force, it contains the Capetown Convention, which contains the aircraft procedures and the declarations we are signing and comply with our conventions and agreements as signed by the International Civil Aviation Organization,”
The convention and agreement are intended to bring unity to ensure the rights of high-value assets such as aircraft, helicopters and engines.
