LexSphere Logo
The Lexsphere Library
Back to Home
Official Legislative Archive

The Protection of Interests in Aircraft Objects Bill, 2025

SECTION Section 1

Untitled Section

5
AS INTRODUCED IN THE RAJYA SABHA ON THE 10TH FEBRUARY, 2025
Bill No. IX of 2025
THE PROTECTION OF INTERESTS IN AIRCRAFT
OBJECTS BILL, 2025
A
BILL
to provide for protection of interests in aircraft objects and to implement 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 Eq uipment, each signed at Cape Town on
16th November, 2001 and for matters connected therewith or incidental
thereto.
BE it enacted by Parliament in the Seventy -sixth Year of the Republic of
India as follows:—
SECTION Section 10

Untitled Section

7.Subject to the provisions of the Bharatiya Vayuyan Adhiniyam, 2024, or
any rules made thereunder, the provisions of Article XIII of the Protocol shall
apply to the de-registration and export request.
SECTION Section 100

Untitled Section

Article 22
Searches
SECTION Section 101

Untitled Section

1.Any person may, in the manner prescribed by the Protocol and
regulations, make or request a search of the International Registry by electronic
means concerning interests or prospective international interests registered
therein.
SECTION Section 102

Untitled Section

2.Upon receipt of a request therefor, the Registrar, in the manner prescribed
by the Protocol and regulations, shall issue a registry search certificate by
electronic means with respect to any object:
(a)stating all registered information relating thereto, together with
a statement indicating the date and time of registration of such
information; or
15
(b)stating that there is no information in the International Registry
relating thereto.
SECTION Section 103

Untitled Section

3.A search certificate issued under the preceding paragraph shall indicate
that the creditor named in the registration information has acquired or intends to
acquire an international interest in the object but shall not indicate whether what
is registered is an international interest or a prospective international interest, even
if this is ascertainable from the relevant registration information.
SECTION Section 104

Untitled Section

Article 23
List of declarations and declared non-consensual rights or interests
The Registrar shall maintain a list of declarations, withdrawals of
declaration and of the categories of non -consensual right or interest
communicated to the Registrar by the Depositary as having been declared by
Contracting States in conformity with Articles 39 and 40 and the date of each such
declaration or withdrawal of declaration. Such list shall be recorded and
searchable in the name of the declaring State and shall be made available as
provided in the Protocol and regulations to any person requesting it.
SECTION Section 105

Untitled Section

Article 24
Evidentiary value of certificates
A document in the form prescribed by the regulations which purports to be
a certificate issued by the International Registry is prima facie proof,––
(a)that it has been so issued; and
(b)of the facts recited in it, including the date and time of a
registration.
SECTION Section 106

Untitled Section

Article 25
Discharge of registration
SECTION Section 107

Untitled Section

1.Where the obligations secured by a registered security interest or the
obligations giving rise to a registered non-consensual right or interest have been
discharged, or where the conditions of transfer of title under a registered title
reservation agreement have been fulfilled, the holder of such interest shall,
without undue delay, procure the discharge of the registration after written
demand by the debtor delivered to or received at its address stated in the
registration.
SECTION Section 108

Untitled Section

2.Where a prospective international interest or a prospective assignment of
an international interest has been registered, the inte nding creditor or intending
assignee shall, without undue delay, procure the discharge of the registration after
written demand by the intending debtor or assignor which is delivered to or
received at its address stated in the registration before the inten ding creditor or
assignee has given value or incurred a commitment to give value.
SECTION Section 109

Untitled Section

3.Where the obligations secured by a national interest specified in a
registered notice of a national interest have been discharged, the holder of such
interest shall, without undue delay, procure the discharge of the registration after
written demand by the debtor delivered to or received at its address stated in the
registration.
SECTION Section 11

Untitled Section

8.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 Section 110

Untitled Section

4.Where a registration ought not to have been made or is incorrect, the
person in whose favour the registration was made shall, without undue delay,
procure its discharge or amendment after written demand by the debtor delivered
to or received at its address stated in the registration.
16
Article 26
Access to the international registration facilities
No person shall be denied access to the registration and search facilities of
the International Registry on any ground other than its failure to comply with the
procedures prescribed by this Chapter.
SECTION Section 111

Untitled Section

CHAPTER VI
PRIVILEGES AND IMMUNITIES OF THE SUPERVISORY AUTHORITY AND THE
REGISTRAR
SECTION Section 112

Untitled Section

Article 27
Legal personality; immunity
SECTION Section 113

Untitled Section

1.The Supervisory Authority shall have international legal personality
where not already possessing such personality.
SECTION Section 114

Untitled Section

2.The Supervisory Authori ty and its officers and employees shall enjoy
such immunity from legal or administrative process as is specified in the Protocol.
SECTION Section 115

Untitled Section

3.(a) The Supervisory Authority shall enjoy exemption from taxes and such
other privileges as may be provided by agreement with the host State.
(b)For the purposes of this paragraph, “host State” means the State in which
the Supervisory Authority is situated.
SECTION Section 116

Untitled Section

4.The assets, documents, databases and archives of the International Registry
shall be inviolable and immune from seizu re or other legal or administrative
process.
SECTION Section 117

Untitled Section

5.For the purposes of any claim against the Registrar under Article 28(1) or
SECTION Section 118

Untitled Section

Article 44, the claimant shall be entitled to access to such information and
documents as are necessary to enable the claimant to pursue its claim.
SECTION Section 119

Untitled Section

6.The Supervisory Authority may waive the inviolability and immunity
conferred by paragraph 4.
SECTION Section 12

Untitled Section

9.(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 provision s 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 inter -government as 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 Section 120

Untitled Section

CHAPTER VII
LIABILITY OF THE REGISTRAR
SECTION Section 121

Untitled Section

Article 28
Liability and financial assurances
SECTION Section 122

Untitled Section

1.The Registrar shall be liable for compensatory damages for loss suffered
by a person directly resulting from an error or omission of the Registrar and its
officers and employee s or from a malfunction of the international registration
system except where the malfunction is caused by an event of an inevitable and
irresistible nature, which could not be prevented by using the best practices in
current use in the field of electronic registry design and operation, including those
related to back-up and systems security and networking.
SECTION Section 123

Untitled Section

2.The Registrar shall not be liable under the preceding paragraph for factual
inaccuracy of registration information received by the Registrar or transmitted by
the Registrar in the form in which it received that information nor for acts or
circumstances for which the Registrar and its officers and employees are not
responsible and arising prior to receipt of registration information at the
International Registry.
SECTION Section 124

Untitled Section

3.Compensation under paragraph 1 may be reduced to the extent that the
person who suffered the damage caused or contributed to that damage.
17
4.The Registrar shall procure insurance or a financial guarantee covering
the liability referred to in this Article to the extent determined by the Supervisory
Authority, in accordance with the Protocol.
SECTION Section 125

Untitled Section

CHAPTER VIII
EFFECTS OF AN INTERNATIONAL INTEREST AS AGAINST THIRD PARTIES
SECTION Section 126

Untitled Section

Article 29
Priority of competing interests
SECTION Section 127

Untitled Section

1.A registered interest has priority over any other interest subsequently
registered and over an unregistered interest.
SECTION Section 128

Untitled Section

2.The priority of the first-mentioned interest under the preceding paragraph
applies,—
(a)even if the first-mentioned interest was acquired or registered with
actual knowledge of the other interest; and
(b)even as regards value given by the holder of the first -mentioned
interest with such knowledge.
SECTION Section 129

Untitled Section

3.The buyer of an object acquires its interest in it,—
(a)subject to an interest registered at the time of its acquisition of that
interest; and
(b)free from an unregistered interest even if it has actual knowledge
of such an interest.
SECTION Section 13

Untitled Section

10.(1) The Central Government may, by notifica tion 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.
Remedies on
insolvency.
De-registration
and export
request
authorisation.
Jurisdiction.
Provisions of
Act to have
overriding
effect.
Power of
Central
Government to
make rules.
4
Power of
Central
Government in
respect of
declarations.
Removal of
difficulties.
(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 Section 130

Untitled Section

4.The conditional buyer or lessee acquires its interest in or right over that
object,—
(a)subject to an int erest registered prior to the registration of the
international interest held by its conditional seller or lessor; and
(b)free from an interest not so registered at that time even if it has
actual knowledge of that interest.
SECTION Section 131

Untitled Section

5.The priority of competing interests or rights under this Article may be
varied by agreement between the holders of those interests, but an assignee of a
subordinated interest is not bound by an agreement to subordinate that interest
unless at the time of the assignment a subordination had been registered relating
to that agreement.
SECTION Section 132

Untitled Section

6.Any priority given by this Article to an interest in an object extends to
proceeds.
SECTION Section 133

Untitled Section

7.This Convention,—
(a)does not affect the rights of a person in an item, other than an
object, held prior to its installation on an object if under the applicable law
those rights continue to exist after the installation; and
(b)does not prevent the creation of rights in an item, other than an
object, which has previously been installed on an object where u nder the
applicable law those rights are created.
SECTION Section 134

Untitled Section

Article 30
Effects of insolvency
SECTION Section 135

Untitled Section

1.In insolvency proceedings against the debtor an international interest is
effective if prior to the commencement of the insolvency proceedings that interest
was registered in conformity with this Convention.
18
2.Nothing in this Article impairs the effectiveness of an international
interest in the insolvency proceedings where that interest is effective under the
applicable law.
SECTION Section 136

Untitled Section

3.Nothing in this Article affects,—
(a)any rules of law applicable in insolvency proceedings relating to
the avoidance of a transaction as a preference or a transfer in fraud of
creditors; or
(b)any rules of procedure relating to the enforcement of rights to
property which is und er the control or supervision of the insolvency
administrator.
SECTION Section 137

Untitled Section

CHAPTER IX
ASSIGNMENTS OF ASSOCIATED RIGHTS AND INTERNATIONAL INTERESTS;
RIGHTS OF SUBROGATION
SECTION Section 138

Untitled Section

Article 31
Effects of assignment
SECTION Section 139

Untitled Section

1.Except as otherwise agreed by the parties, an assignment of associated
rights made in conformity with Article 32 also transfers to the assignee,—
(a)the related international interest; and
(b)all the interests and priorities of the assignor under this
Convention.
SECTION Section 14

Untitled Section

11.(1) The Central Governm ent 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 withdra wn under the Convention or
the Protocol , may, by notification in the Official Gazette, amend the Second
Schedule to this Act.
SECTION Section 140

Untitled Section

2.Nothing in this Convention prevents a partial assignment of the assignor’s
associated rights. In the case of such a partial assignment the assignor and
assignee may agree as to their respective rights concerning the related
international interest assigned under the preced ing paragraph but not so as
adversely to affect the debtor without its consent.
SECTION Section 141

Untitled Section

3.Subject to paragraph 4, the applicable law shall determine the defences
and rights of set-off available to the debtor against the assignee.
SECTION Section 142

Untitled Section

4.The debtor may at any time by agreement in writing waive all or any of
the defences and rights of set-off referred to in the preceding paragraph other than
defences arising from fraudulent acts on the part of the assignee.
SECTION Section 143

Untitled Section

5.In the case of an assignment by way of security, the assigne d associated
rights revest in the assignor, to the extent that they are still subsisting, when the
obligations secured by the assignment have been discharged.
SECTION Section 144

Untitled Section

Article 32
Formal requirements of assignment
SECTION Section 145

Untitled Section

1.An assignment of associated rights transfers the related international
interest only if it,—
(a)is in writing;
(b)enables the associated rights to be identified under the contract
from which they arise; and
(c)in the case of an assignment by way of security, enables the
obligations secured by the assignment to be determined in accordance with
the Protocol but without the need to state a sum or maximum sum secured.
SECTION Section 146

Untitled Section

2.An assignment of an international interest created or provided for by a
security agreement is not valid unless some or all related associated rights also are
assigned.
19
3.This Convention does not apply to an assignment of associated rights
which is not effective to transfer the related international interest.
SECTION Section 147

Untitled Section

Article 33
Debtor’s duty to assignee
SECTION Section 148

Untitled Section

1.To the extent that associated rights and the related international interest
have been transferred in accordance with Articles 31 and 32, the debtor in relation
to those rights and that interest is bound by the assignment and has a duty to make
payment or give other performance to the assignee, if but only if,—
(a)the debtor has been given notice of the assignment in writing by or
with the authority of the assignor; and
(b)the notice identifies the associated rights.
SECTION Section 149

Untitled Section

2.Irrespective of any other ground on which payment or performance by the
debtor discharges the latter from liability, payment or performance shall be
effective for this purpose if made in accordance with the preceding paragraph.
SECTION Section 15

Untitled Section

12.(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.
5
10
15
20
25
5
THE FIRST SCHEDULE
[See clause (e) of sub-section (1) of section 2]
PROVISIONS OF THE CONVENTION ON INTERNATIONAL INTERSTS IN MOBILE
EQUIPMENT WHICH SHALL HAVE THE FORCE OF LAW
SECTION Section 150

Untitled Section

3.Nothing in this Article shall affect the priority of competing assignments.
SECTION Section 151

Untitled Section

Article 34
Default remedies in respect of assignment by way of security
In the event of default by the assignor under the assignment of associated
rights and the related international interest made by way of security, Articles 8, 9
and 11 to 14 apply in the relations between the assignor and the assignee (and, in
relation to associated rights, apply in so far as those provisions are capable of
application to intangible property) as if references,—
(a)to the secured obligation and the security interest were references to the
obligation secured by the assignment of the associated rights and the related
international interest and the security interest created by that assignment;
(b)to the chargee or creditor and chargor or debtor were references to the
assignee and assignor;
(c)to the holder of the international interest were references to the assignee;
and
(d)to the object were references to the assigned associated rights and the
related international interest.
SECTION Section 152

Untitled Section

Article 35
Priority of competing assignments
SECTION Section 153

Untitled Section

1.Where there are competing assignments of associated rights and at least
one of the assignments includes the related international interest and is registered,
the provisions of Article 29 apply as if the references to a registered interest were
references to an assignment of the associated rights and the related registered
interest and as if references to a registered or unregistered interest were references
to a registered or unregistered assignment.
SECTION Section 154

Untitled Section

2.Article 30 applies to an assignment of associated rights as if the references
to an international interest were references to an assignment of the associated
rights and the related international interest.
SECTION Section 155

Untitled Section

Article 36
Assignee’s priority with respect to associated rights
SECTION Section 156

Untitled Section

1.The assignee of associated rights and the related international interest
whose assignment has been registered only has priority under Article 35 (1) over
another assignee of the associated rights:
20
(a)if the contract under which the associated rights arise states that
they are secured by or associated with the object; and
(b)to the extent that the associated rights are related to an object.
SECTION Section 157

Untitled Section

2.For the purposes of sub -paragraph (b) of the preceding par agraph,
associated rights are related to an object only to the extent that they consist of
rights to payment or performance that relate to:
(a)a sum advanced and utilised for the purchase of the object;
(b)a sum advanced and utilised for the purchase of another object in
which the assignor held another international interest if the assignor
transferred that interest to the assignee and the assignment has been
registered;
(c)the price payable for the object;
(d)the rentals payable in respect of the object; or
(e)other obligations arising from a transaction referred to in any of the
preceding sub-paragraphs.
SECTION Section 158

Untitled Section

3.In all other cases, the priority of the competing assignments of the
associated rights shall be determined by the applicable law.
SECTION Section 159

Untitled Section

Article 37
Effects of assignor’s insolvency
The provisions of Article 30 apply to insolvency proceedings against the
assignor as if references to the debtor were references to the assignor.
SECTION Section 16

Untitled Section

CHAPTER I
SPHERE OF APPLICATION AND GENERAL PROVISIONS
SECTION Section 160

Untitled Section

Article 38
Subrogation
SECTION Section 161

Untitled Section

1.Subject to paragraph 2, nothing in this Convention affects the acquisition
of associated rights and the related international interest by legal or contractual
subrogation under the applicable law.
SECTION Section 162

Untitled Section

2.The priority between any interest within the preceding paragraph and a
competing interest may be varied by agreement in writing between the holders of
the respective interests but an assignee of a subordinated interest is not bound by
an agreement to subordinate that interest unless at the time of the assignment a
subordination had been registered relating to that agreement.
SECTION Section 163

Untitled Section

CHAPTER X
RIGHTS OR INTERESTS SUBJECT TO DECLARATIONS BY CONTRACTING
STATES
SECTION Section 164

Untitled Section

Article 39
Rights having priority without registration
SECTION Section 165

Untitled Section

1.A Contracting State may at any time, in a declaration deposited with the
Depositary of the Protocol declare, generally or specifically:
(a)those categories of non -consensual right or interest (other than a
right or interest to which Article 40 applies ) which under that State’s law
have priority over an interest in an object equivalent to that of the holder of
a registered international interest and which shall have priority over a
registered international interest, whether in or outside insolvency
proceedings; and
21
(b)that nothing in this Convention shall affect the right of a State or
State entity, inter governmental organisation or other private provider of
public services to arrest or detain an object under the laws of that State for
payment of amounts owed to such entity, organisation or provider directly
relating to those services in respect of that object or another object.
SECTION Section 166

Untitled Section

2.A declaration made under the preceding paragraph may be expressed to
cover categories that are created after the deposit of that declaration.
SECTION Section 167

Untitled Section

3.A non -consensual right or interest has priority over an international
interest if and only if the former is of a category covered by a declaration
deposited prior to the registration of the international interest.
SECTION Section 168

Untitled Section

4.Notwithstanding the preceding paragraph, a Contracting State may, at
the time of ratification, acceptance, approval of, or accession to the Protocol,
declare that a right or interest of a category covered by a declaration made
under sub-paragraph (a) of paragraph 1 shall have priority over an
international interest registered prior to the date of such ratification,
acceptance, approval or accession.
SECTION Section 169

Untitled Section

Article 40
Registrable non-consensual rights or interests
A Contracting State may at any time in a declaration deposited with the
Depositary of the Protocol list the categories of non -consensual right or interest
which shall be registrable under this Convention as regards any category of object
as if the right or interest were an international interest and shall be regulated
accordingly.Such a declaration may be modified from time to time.
SECTION Section 17

Untitled Section

Article 1
Definitions
In this Convention, except where the context otherwise requires, the
following terms are employed with the meanings set out below:
(a)“agreement” means a security agreement, a title reservation
agreement or a leasing agreement;
(b)“assignment” means a contract which, whether by way of security
or otherwise, confers on the assignee associated rights with or without a
transfer of the related international interest;
(c)“associated rights” means all rights to payment or other
performance by a debtor under an agreeme nt which are secured by or
associated with the object;
(d)“commencement of the insolvency proceedings” means the time at
which the insolvency proceedings are deemed to commence under the
applicable insolvency law;
(e)“conditional buyer” means a buyer und er a title reservation
agreement;
(f)“conditional seller” means a seller under a title reservation
agreement;
(g)“contract of sale” means a contract for the sale of an object by a
seller to a buyer which is not an agreement as defined in (a) above;
(h)“court” means a court of law or an administrative or arbitral
tribunal established by a Contracting State;
(i)“creditor” means a chargee under a security agreement, a
conditional seller under a title reservation agreement or a lessor under a
leasing agreement;
(j)“debtor” means a chargor under a security agreement, a conditional
buyer under a title reservation agreement, a lessee under a leasing agreement
or a person whose interest in an object is burdened by a registrable
non-consensual right or interest;
(k)“insolvency administrator” means a person authorised to administer
the re-organisation or liquidation, including one authorised on an interim
basis, and includes a debtor in possession if permitted by the applicable
insolvency law;
(l)“insolvency proceedings” means bankruptcy, liquidation or other
collective judicial or administrative proceedings, including interim
proceedings, in which the assets and affairs of the debtor are subject to
control or supervision by a court for the purposes of re -organisation or
liquidation;
(m)“interested persons” means:
5
6
(i)the debtor;
(ii) any person who, for the purpose of assuring performance of
any of the obligations in favour of the creditor, gives or issues a
suretyship or demand guarantee or a stand by letter of credit or any
other form of credit insurance;
(iii) any other person having rights in or over the object;
(n)“internal transaction” means a transaction of a type listed in
SECTION Section 170

Untitled Section

CHAPTER XI
APPLICATION OF THE CONVENTION TO SALES
SECTION Section 171

Untitled Section

Article 41
Sale and prospective sale
This Convention shall apply to the sale or prospective sale of an object as
provided for in the Protocol with any modifications therein.
SECTION Section 172

Untitled Section

CHAPTER XII
JURISDICTION
SECTION Section 173

Untitled Section

Article 42
Choice of forum
SECTION Section 174

Untitled Section

1.Subject to Articles 43 and 44, the courts of a Contracting State chosen by
the parties to a transaction have jurisdiction in respect of any claim brought under
this Conve ntion, whether or not the chosen forum has a connection with the
parties or the transaction. Such jurisdiction shall be exclusive unless otherwise
agreed between the parties.
SECTION Section 175

Untitled Section

2.Any such agreement shall be in writing or otherwise concluded in
accordance with the formal requirements of the law of the chosen forum.
22
Article 43
Jurisdiction under Article 13
SECTION Section 176

Untitled Section

1.The courts of a Contracting State chosen by the parties and the courts of
the Contracting State on the territory of which the object is situated have
jurisdiction to grant relief under Article 13 (1)(a), (b), (c) and Article 13 (4) in
respect of that object.
SECTION Section 177

Untitled Section

2.Jurisdiction to grant relief under Article 13 (1)(d) or other interim relief
by virtue of Article 13(4) may be exercised either:
(a)by the courts chosen by the parties; or
(b)by the courts of a Contracting State on the territory of which the
debtor is situated, being relief which, by the terms of the order granting it,
is enforceable only in the territory of that Contracting State.
SECTION Section 178

Untitled Section

3.A court has jurisdiction under the preceding paragraphs even if the final
determination of the claim referred to in Article 13(1) will or may take place in a
court of another Contracting State or by arbitration.
SECTION Section 179

Untitled Section

Article 44
Jurisdiction to make orders against the Registrar
SECTION Section 18

Untitled Section

Article 2(2)(a) to (c) where the centre of the main interests of all parties to
such transaction is situated, and the relevant object located (as specified in
the Protocol), the same Contracting State at the time of the conclusion of the
contract and where the interest created by the transaction has been registered
in a national registry in that Contracting State which has made a declaration
under Article 50(1);
(o)“international interest” means an interest held by a creditor to
which article 2 applies;
(p)“international registry” means the international registration facilities
established for the purposes of this Convention or the Protocol;
(q)“leasing agreement” means an agreement by which one person
grants a right to possession or control of an object (with or without an option
to purchase) to another person in return for a rental or other payment;
(r)“national interest” means an interest held by a creditor in an object
and created by an internal transaction covered by a declaration under
SECTION Section 180

Untitled Section

1.The courts of the place in which the Registrar has its centre of
administration shall have exclusive jurisdiction to award damages or make orders
against the Registrar.
SECTION Section 181

Untitled Section

2.Where a person fails to respond to a demand made under Article 25 and
that person has ceased to exist or cannot be found for the purpose of enabling an
order to be made against it requiring it to procure discharge of the registration, the
courts referred to in the preceding paragraph shall have exclusive jurisdiction, on
the application of the debtor or intending debtor, to make an order directed to the
Registrar requiring the Registrar to discharge the registration.
SECTION Section 182

Untitled Section

3.Where a person fails to comply with an order of a court having jurisdiction
under this Convention or, in the case of a national interest, an order of a court of
competent jurisdiction requiring that person to procure the amendment or
discharge of a registration, the courts referred to in paragraph 1 may direct the
Registrar to take such steps as will give effect to that order.
SECTION Section 183

Untitled Section

4.Except as otherwise provided by the preceding paragraphs, no court may
make orders or give judgments or rulings against or purporting to bind the
Registrar.
SECTION Section 184

Untitled Section

Article 45
Jurisdiction in respect of insolvency proceedings
The provisions of this Chapter are not applicable to insolvency proceedings.
SECTION Section 185

Untitled Section

CHAPTER XIII
RELATIONSHIP WITH OTHER CONVENTIONS
SECTION Section 186

Untitled Section

Article 45 bis
Relationship with the United Nations Convention on the Assignment of
Receivables in International Trade
This Convention shall prevail over the United Nations Convention on the
Assignment of Receivables in International Trade, opened for signature in New
York on 12 December 2001, as it relates to the assignment of receivables which
are associated rights related to international interests in aircraft objects, railway
rolling stock and space assets.
23
Article 46
Relationship with the UNIDROIT Convention on International Financial
Leasing
The Protocol may determine the relationship between this Convention and
the UNIDROIT Convention on International Financial Leasing, signed at Ottawa
on 28 May 1988.
SECTION Section 187

Untitled Section

CHAPTER XIV
FINAL PROVISIONS
SECTION Section 188

Untitled Section

Article 47
Signature, ratification, acceptance, approval or accession
SECTION Section 189

Untitled Section

1.This Convention shall be open for signature in Cape Town on
16 November 2001 by States participating in the Diplomatic Conference to Adopt
a Mobile Equipment Convention and an Aircraft Protocol held at Cape Town from
29 October to 16 November 2001. After 16 November 2001, the Convention shall
be open to all States for signature at the Headquarters of the International Institute
for the Unification of Private Law (UNIDROIT) in Rome until it enters into force
in accordance with Article 49.
SECTION Section 19

Untitled Section

Article 50 (1);
(s)“non-consensual right or interest” means a right or interest
conferred under the law of a Contracting State which has made a declaration
under Article 39 to secure the performance of an obligation, including an
obligation to a State, State entity or an inter -governmental or private
organisation;
(t)“notice of a national interest” means notice registered or to be
registered in the international registry that a national interest has been
created;
(u)“object” means an object of a category to which Article 2 applies;
(v)“pre-existing right or interest” means a right or interest of any kind
in or over an object created or arising before the effective date of this
Convention as defined by Article 60(2)(a);
(w)“proceeds” means money or non -money proceeds of an object
arising from the total or partial loss or physical destruction of the object or
its total or partial confiscation, condemnation or requisition;
(x)“prospective assignment” means an assignment that is intended to
be made in the future, upon the occurrence of a stated event, whether or not
the occurrence of the event is certain;
(y)“prospective international interest” means an interest that is
intended to be created or provided for in an object as an international interest
in the future, upon the occurrence of a stated event (which may include the
debtor’s acquisition of an interest in the object ), whether or not the
occurrence of the event is certain;
(z)“prospective sale” means a sale which is intended to be made in
the future, upon the oc currence of a stated event, whether or not the
occurrence of the event is certain;
7
(aa) “Protocol” means, in respect of any category of object and
associated rights to which this Convention applies, the Protocol in respect
of that category of object and associated rights;
(bb) “registered” means registered in the international registry
pursuant to Chapter V;
(cc) “registered interest” means an international interest, a registrable
non-consensual right or interest or a national interest specified in a notice of
a national interest registered pursuant to Chapter V;
(dd) “registrable non-consensual right or interest” means a non-consensual
right or interest registrable pursuant to a declaration deposited under Article 40;
(ee) “Registrar” means, in respect of the Protocol, the person or body
designated by that Protocol or appointed under Article 17(2)(b);
(ff) “regulations” means regulations made or approved by the
supervisory authority pursuant to the Protocol;
(gg) “sale” means a transfer of ownership of an object pursuant to a
contract of sale;
(hh) “secured obligation” means an obligation secured by a security
interest;
(ii) “security agreement” means an agreement by which a chargor
grants or agrees to grant to a chargee an interest (including an ownership
interest) in or over an object to secure the performance of any existing or
future obligation of the chargor or a third person;
(jj) “security interest” means an interest created by a security
agreement;
(kk) “Supervisory Authority” means, in respect of the Protocol, the
Supervisory Authority referred to in Article 17(1);
(ll) “title reservation agreement” means an agreement for the sale of
an object on terms that ownership does not pass until fulfilment of the
condition or conditions stated in the agreement;
(mm) “unregistered interest” means a consensual interest or
non -consensual right or interest (other than an interest to which
SECTION Section 190

Untitled Section

2.This Convention shall be subject to ratification, accep tance or approval
by States which have signed it.
SECTION Section 191

Untitled Section

3.Any State which does not sign this Convention may accede to it at any
time.
SECTION Section 192

Untitled Section

4.Ratification, acceptance, approval or accession is effected by the deposit
of a formal instrument to that effect with the Depositary.
SECTION Section 193

Untitled Section

Article 48
Regional Economic Integration Organisations
SECTION Section 194

Untitled Section

1.A Regional Economic Integration Organisation which is constituted by
sovereign States and has competence over certain matters governed by this
Convention may similarly sign, accept, approve or accede to this Convention. The
Regional Economic Integration Organisation shall in that case have the rights and
obligations of a Contracting State, to the extent that that Organisation has
competence over matters governed by this Convention. Where th e number of
Contracting States is relevant in this Convention, the Regional Economic
Integration Organisation shall not count as a Contracting State in addition to its
Member States which are Contracting States.
SECTION Section 195

Untitled Section

2.The Regional Economic Integration Organisation shall, at the time of
signature, acceptance, approval or accession, make a declaration to the Depositary
specifying the matters governed by this Convention in respect of which
competence has been transferred to that Organisation by its Member States. The
Regional Economic Integration Organisation shall promptly notify the Depositary
of any changes to the distribution of competence, including new transfers of
competence, specified in the declaration under this paragraph.
SECTION Section 196

Untitled Section

3.Any reference to a “Contracting State” or “Contracting States” or “State
Party” or “States Parties” in this Convention applies equally to a Regional
Economic Integration Organisation where the context so requires.
SECTION Section 197

Untitled Section

Article 49
Entry into force
SECTION Section 198

Untitled Section

1.This Convention enters into force on the first day of the month following
the expiration of three months after the date of the deposit of the third instrument
of ratification, acceptance, approval or accession but only as regards a category
of objects to which a Protocol applies:
24
(a)as from the time of entry into force of that Protocol;
(b)subject to the terms of that Protocol; and
(c)as between States Parties to this Convention and that Protocol.
SECTION Section 199

Untitled Section

2.For other States this Convention enters into force on the first day of the
month following the expiration of three months after the date of the deposit of
their instrument of ratification, acceptance, approval or accession but only as
regards a category of objects to which a Protocol applies and subject, in relation
to such Protocol, to the requirements of sub -paragraphs (a), (b) and (c) of the
preceding paragraph.
SECTION Section 2

Untitled Section

1.(1) This Act may be called the Protection of Interests in Aircraft Objects
Act, 2025.
(2)It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
SECTION Section 20

Untitled Section

Article 39 applies ) which has not been registered, whether or not it is
registrable under this Convention; and
(nn) “writing” means a record of information (including information
communicated by teletransmission) which is intangible or other form and is
capable of being reproduced in tangible form on a subsequent occasion and
which indicates by reasonable means a person’s approval of the record.
SECTION Section 200

Untitled Section

Article 50
Internal transactions
SECTION Section 201

Untitled Section

1.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to the Protocol, declare that this Convention shall not apply to a
transaction which is an internal transaction in relation to that State with regard to
all types of objects or some of them.
SECTION Section 202

Untitled Section

2.Notwithstanding the preceding paragraph, the provisions of Articles 8(4),
9(1), 16, Chapter V, Article 29, and any provisions of this Convention relating to
registered interests shall apply to an internal transaction.
SECTION Section 203

Untitled Section

3.Where notice of a national interest has been registered in the International
Registry, the priority of the holder of that interest under Article 29 shall not be
affected by the fact that such interest has become vested in another person by
assignment or subrogation under the applicable law.
SECTION Section 204

Untitled Section

Article 51
Future Protocols
SECTION Section 205

Untitled Section

1.The Depositary may create working groups, in co -operation with such
relevant non-governmental organisations as the Depositary considers appropriate,
to assess the feasibility of extending the application of this Convention, through
one or more Protocols, to objects of any category of high-value mobile equipment,
other than a category referred to in Article 2(3), each member of which is uniquely
identifiable, and associated rights relating to such objects.
SECTION Section 206

Untitled Section

2.The Depositary shall commun icate the text of any preliminary draft
Protocol relating to a category of objects prepared by such a working group to all
States Parties to this Convention, all member States of the Depositary, member
States of the United Nations which are not members of the Depositary and the
relevant intergovernmental organisations, and shall invite such States and
organisations to participate in inter governmental negotiations for the completion
of a draft Protocol on the basis of such a preliminary draft Protocol.
SECTION Section 207

Untitled Section

3.The Depositary shall also communicate the text of any preliminary draft
Protocol prepared by such a working group to such relevant non -governmental
organisations as the Depositary considers appropriate.Such non -governmental
organisations shall be invited pr omptly to submit comments on the text of the
preliminary draft Protocol to the Depositary and to participate as observers in the
preparation of a draft Protocol.
SECTION Section 208

Untitled Section

4.When the competent bodies of the Depositary adjudge such a draft
Protocol ripe for adoption, the Depositary shall convene a diplomatic conference
for its adoption.
SECTION Section 209

Untitled Section

5.Once such a Protocol has been adopted, subject to paragraph 6, this
Convention shall apply to the category of objects covered thereby.
25
6.Article 45 bis of this Convention applies to such a Protocol only if
specifically provided for in that Protocol.
SECTION Section 21

Untitled Section

Article 2
The international interest
SECTION Section 210

Untitled Section

Article 52
Territorial units
SECTION Section 211

Untitled Section

1.If a Contracting State has territorial units in which different systems of
law are applicable in relation to the matters dealt with in this Convention, it may,
at the time of ratification, acceptance, approval or accession, declare that this
Convention is to extend to all its territorial units or only to one or more of them
and may modify its declaration by submitting another declaration at any time.
SECTION Section 212

Untitled Section

2.Any such declaration shall state expressly the territorial units to which
this Convention applies.
SECTION Section 213

Untitled Section

3.If a Contracting State has not made any declaration under paragraph 1,
this Convention shall apply to all territorial units of that State.
SECTION Section 214

Untitled Section

4.Where a Contracting State extends this Convention to one or more of its
territorial units, declarations permitted under this Convention may be made in
respect of each such territorial unit, and the declarations made in respect of one
territorial unit may be different from those made in respect of another territorial
unit.
SECTION Section 215

Untitled Section

5.If by virtue of a declaration under paragraph 1, this Convention extends
to one or more territorial units of a Contracting State:
(a)the debtor is considered to be situated in a Contracting State only
if it is incorporated or formed under a law in force in a territorial unit to
which this Convention applies or if it has its registered office or statutory
seat, centre of administration, place of business or habitual residence i n a
territorial unit to which this Convention applies;
(b)any reference to the location of the object in a Contracting State
refers to the location of the object in a territorial unit to which this
Convention applies; and
(c)any reference to the administrative authorities in that Contracting
State shall be construed as referring to the administrative authorities having
jurisdiction in a territorial unit to which this Convention applies.
SECTION Section 216

Untitled Section

Article 53
Determination of courts
A Contracting State may, at the time of ratification, acceptance, approval of,
or accession to the Protocol, declare the relevant “court” or “courts” for the
purposes of Article 1 and Chapter XII of this Convention.
SECTION Section 217

Untitled Section

Article 54
Declarations regarding remedies
SECTION Section 218

Untitled Section

1.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to the Protocol, declare that while the charged object is situated
within, or controlled from its territory the chargee shall not grant a lease of the
object in that territory.
SECTION Section 219

Untitled Section

2.A Contracting State shall, at the time of ratification, acceptance, approval
of, or accession to the Protocol, declare whether or not any remedy available to
the creditor under any provision of this Convention which is not there expressed
to require application to the court may be exercised only with leave of the court.
26
Article 55
Declarations regarding relief pending final determination
A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to the Protocol, declare that it will not apply the provisions of
SECTION Section 22

Untitled Section

1.This convention provides for the constitution and effects of an
international interest in ce rtain categories of mobile equipment and associated
rights.
SECTION Section 220

Untitled Section

Article 13 or Article 43, or both, wholly or in part. The declaration shall specify
under which conditions the relevant Article will be applied, in case it will be
applied partly, or otherwise which other forms of interim relief will be applied.
SECTION Section 221

Untitled Section

Article 56
Reservations and declarations
SECTION Section 222

Untitled Section

1.No reservations may be made to this Convention but declarations
authorised by Articles 39, 40, 50, 52, 53, 54, 55, 57, 58 and 60 may be made in
accordance with these provisions.
SECTION Section 223

Untitled Section

2.Any declaration or subsequent declaration or any withdrawal of a
declaration made under this Convention shall be notified in writing to the
Depositary.
SECTION Section 224

Untitled Section

Article 57
Subsequent declarations
SECTION Section 225

Untitled Section

1.A State Party may make a subsequent declaration, other than a declaration
authorised under Article 60, at any time after the date on which this Convention
has entered into force for it, by notifying the Depositary to that effect.
SECTION Section 226

Untitled Section

2.Any such subsequent declaration shall take effect on the first day of the
month following the expiration of six months after the date of receipt of the
notification by the Depositary. Where a longer period for that declaration to take
effect is specified in the notification, it shall take effect upon the expiration of
such longer period after receipt of the notification by the Depositary.
SECTION Section 227

Untitled Section

3.Notwithstanding the previous paragraphs, this Convention shall continue
to apply, as if no such subsequent declarations had been made, in respect of all
rights and interests arising prior to the effective d ate of any such subsequent
declaration.
SECTION Section 228

Untitled Section

Article 58
Withdrawal of declarations
SECTION Section 229

Untitled Section

1.Any State Party having made a declaration under this Convention, other
than a declaration authorised under Article 60, may withdraw it at any time by
notifying the Depositary. Such withdrawal is to take effect on the first day of the
month following the expiration of six months after the date of receipt of the
notification by the Depositary.
SECTION Section 23

Untitled Section

2.For the purposes of this Convention, an international interest in mobile
equipment is an interest, constituted under Article 7, in a uniquely identifiable
object of a category of such objects l isted in paragraph 3 and designated in the
Protocol:
(a)granted by the chargor under a security agreement;
8
(b)vested in a person who is the conditional seller under a title
reservation agreement; or
(c)vested in a person who is the lessor under a leasing agreement.
An interest falling within sub -paragraph (a) does not also fall within
sub-paragraph (b) or (c).
SECTION Section 230

Untitled Section

2.Notwithstanding the previous paragraph, this Convention shall continue
to apply, as if no such withdrawal of declaration had been made, in respect of all
rights and interests arising prior to the effective date of any such withdrawal.
SECTION Section 231

Untitled Section

Article 59
Denunciations
SECTION Section 232

Untitled Section

1.Any State Party may denounce this Convention by notification in writing
to the Depositary.
SECTION Section 233

Untitled Section

2.Any such denunciation shall take effect on the first day of the month
following the expiration of twelve months after the date on which notification is
received by the Depositary.
27
3.Notwithstanding the previous paragraphs, this Convention shall continue
to apply, as if no such denunciation had been made, in respect of all rights and
interests arising prior to the effective date of any such denunciation.
SECTION Section 234

Untitled Section

Article 60
Transitional provisions
SECTION Section 235

Untitled Section

1.Unless otherwise declared by a Contract ing State at any time, the
Convention does not apply to a pre -existing right or interest, which retains the
priority it enjoyed under the applicable law before the effective date of this
Convention.
SECTION Section 236

Untitled Section

2.For the purposes of Article 1(v) and of determining pr iority under this
Convention:
(a)“effective date of this Convention” means in relation to a debtor
the time when this Convention enters into force or the time when the State
in which the debtor is situated becomes a Contracting State, whichever is
the later; and
(b)the debtor is situated in a State where it has its centre of administration
or, if it has no centre of administration, its place of business or, if it has more
than one place of business, its principal place of business or, if it has no
place of business, its habitual residence.
SECTION Section 237

Untitled Section

3.A Contracting State may in its declaration under paragraph 1 specify a
date, not earlier than three years after the date on which the declaration becomes
effective, when this Convention and the Protocol will become applicable, for the
purpose of determining priority, including the protection of any existing priority,
to pre-existing rights or interests arising under an agreement made at a time when
the debtor was situated in a State referred to in sub-paragraph (b) of the preceding
paragraph but only to the extent and in the manner specified in its declaration.
SECTION Section 238

Untitled Section

Article 61
Review Conferences, amendments and related matters
SECTION Section 239

Untitled Section

1.The Depositary shall prepare reports yearly or at such other time as the
circumstances may requi re for the States Parties as to the manner in which the
international regimen established in this Convention has operated in practice. In
preparing such reports, the Depositary shall take into account the reports of the
Supervisory Authority concerning the functioning of the international registration
system.
SECTION Section 24

Untitled Section

3.The categories referred to in the preceding paragraphs are:
(a)airframes, aircraft engines and helicopters;
(b)railway rolling stock; and
(c)space assets.
SECTION Section 240

Untitled Section

2.At the request of not less than twenty-five per cent. of the States Parties,
Review Conferences of States Parties shall be convened from time to time by the
Depositary, in consultation with the Supervisory Authority, to consider:
(a)the practical operation of this Convention and its effectiveness in
facilitating the asset-based financing and leasing of the objects covered by
its terms;
(b)the judicial interpretation given to, and the application made of the
terms of this Convention and the regulations;
(c)the functioning of the international registration s ystem, the
performance of the Registrar and its oversight by the Supervisory Authority,
taking into account the reports of the Supervisory Authority; and
(d)whether any modifications to this Convention or the arrangements
relating to the International Registry are desirable.
28
3.Subject to paragraph 4, any amendment to this Convention shall be
approved by at least a two -thirds majority of States Parties participating in the
Conference referred to in the preceding paragraph and shall then enter into force
in respect of States which have ratified, accepted or approved such amendment
when ratified, accepted, or approved by three States in accordance with the
provisions of Article 49 relating to its entry into force.
SECTION Section 241

Untitled Section

4.Where the proposed amendment to this Convention is intended to apply
to more than one category of equipment, such amendment shall also be approved
by at least a two -thirds majority of S tates Parties to each Protocol that are
participating in the Conference referred to in paragraph 2.
SECTION Section 242

Untitled Section

Article 62
Depositary and its functions
SECTION Section 243

Untitled Section

1.Instruments of ratification, acceptance, approval or accession shall be
deposited with the International Institute for the Unification of Private Law
(UNIDROIT), which is hereby designated the Depositary.
SECTION Section 244

Untitled Section

2.The Depositary shall:
(a)inform all Contracting States of:
(i)each new signature or deposit of an instrument of ratification,
acceptance, approval or accession, together with the date thereof;
(ii) the date of entry into force of this Convention;
(iii) each declaration made in accordance with this Convention,
together with the date thereof;
(iv) the withdrawal or amendment of any declaration, together
with the date thereof; and
(v)the notification of any denunciation of this Convention
together with the date thereof and the date on which it takes effect;
(b)transmit certified true copies of this Convention to all Contracting
States;
(c)provide the Supervisory Authority and the Registrar with a copy of
each instrument of ratification, acceptance, approval or accession, together
with the date of deposit thereof, of each declaration or withdrawal or
amendment of a declaration and of each n otification of denunciation,
together with the date of notification thereof, so that the information
contained therein is easily and fully available; and
(d)perform such other functions customary for depositaries.
44
THE SECOND SCHEDULE
[See clause (i) of sub-section (1) of section 2]
DECLARATIONS LODGED BY THE REPUBLIC OF INDIA UNDER THE CONVENTION
ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT AT THE TIME OF THE DEPOSIT
OF ITS INSTRUMENT OF ACCESSION
(i)Form No. 1 [Specific declaration under Article 39(1)(a)]
The following categories of non-consensual right or interest have priority under
its laws over an interest in an aircraft object equivalent to that of the h older of a
registered international interest and shall have priority over a registered international
interest, whether in or outside insolvency proceedings, namely:—
(a)liens in favour of airline employees for unpaid wages arising since the
time of a declared default by that airline under a contract to finance or lease and
aircraft object;
(b)liens or other rights of an authority of India relating to taxes or other
unpaid charges arising from or related to the use of that aircraft object and owed
by the owner or operator of that aircraft object, arising since the time of a default
by that owner or operator under a contract to finance or lease that aircraft object;
and
(c)liens in favour of repairers of an aircraft object in their possession to the
extent of service or services performed on and value added to that aircraft object.
(ii) Form No. 4 [General declaration under Article 39(1)(b)]
Nothing in the Convention shall affect its right or that of any entity thereof, or
any intergovernmental organi sation in which India is a member, or other private
provider of public services in India, to arrest or detain an aircraft object under its laws
for payment of a mounts owed to the Government of India, any such entity,
organisation or provider directly relating to the service or services provided by it in
respect of that object or another aircraft object.
(iii) Form No. 6 (Declaration under Article 40)
The following categories of non-consensual right or interest shall be registrable
under the Convention as regards any category of aircraft object as if the right or
interest were an international interest and shall be regulated accordingly, namely: —
(a)liens in favour of airline employees for unpaid wages arising prior to
the time of a declared default by that airline under a contract to finance or lease
an aircraft object;
(b)liens or other rights of an authority of India relating to taxes or other
unpaid charges arising from or related to the use of an aircraft object and owed
by the owner or operator of that aircraft object, arising prior to the time of a
declared default by that owner or operator under a contract to finance or lease
that aircraft object; and
(c)rights of a person obtaining a court order permitting attachment of an
aircraft object in partial or full satisfaction of a legal judgment.
(iv) Form No. 10 (General declaration under Article 52)
The Convention shall apply to all its territorial units.
(v)Form No. 11 (Declaration under Article 53)
All the High Courts within their respective territorial jurisdiction are the
relevant courts for the purposes of Article 1 and Chapter XII of the Convention.
(vi) Form No. 13 [Mandatory declaration under Article 54(2)]
Any and all remedies available to the creditor under the Convention which are
not expressed under the relevant provision thereof to require application to the court
may be exercised without court action and without leave of the court.
29
30
DECLARATIONS LODGED BY THE REPUBLIC OF INDIA UNDER THE PROTOCOL TO
THE CONVENTION ON INTERNATIONAL INTERESTS IN MOBILE EQUIPMENT ON
MATTERS SPECIFIC TO AIRCRAFT EQUIPMENT AT THE TIME OF THE DEPOSIT OF ITS
INSTRUMENT OF ACCESSION
(i)Form No. 19 [Declaration under Article XXX(1) in respect of
SECTION Section 245

Untitled Section

Article VIII]
India will apply Article VIII.
(ii) Form No. 21 [Declaration under Article XXX(2) in respect of
SECTION Section 246

Untitled Section

Article X providing for the application of the entirety of Article X]
India will apply Article X of the Protocol in its entirety and the number of
working days to be used for the purposes of the time limit laid down in
SECTION Section 247

Untitled Section

Article X(2) of the Protocol shall be that equal to no more than:
(a)ten (10) working days in respect of the remedies specified in
SECTION Section 248

Untitled Section

Article 13(1)(a), (b) and (c) of the Convention (respectively, preservation of
aircraft objects and their value; possession, control or custody of aircraft
objects; and, immobilization of aircraft objects); and
(b)thirty (30) working days in respect of the remedies specified in
SECTION Section 249

Untitled Section

Article 13(1) (d) and (e) of the Convention (respectively, lease or management
of aircraft objects and the income thereof; and, sale and applicati on of
proceeds from aircraft objects).
(iii) Form No. 23 [General declaration under Article XXX(3) in
respect of Article XI providing for the application of Alternative A in its
entirety to all types of insolvency proceeding]
India will apply Article XI, A lternative A, of the Protocol in its entirety to
all types of insolvency proceedings, and that the waiting period for the purposes
of Article XI(3) of that Alternative shall be two (2) calendar months.
(iv) Form No.26 [Declaration under Article XXX(1) in respect of Article XII]
India will apply Article XII.
(v)Form No. 27 [Declaration under Article XXX(1) in respect of Article XIII]
India will apply Article XIII.
31
THE THIRD SCHEDULE
[See clause (m) of sub-section (1) of section 2]
PROVISIONS OF THE PROTOCOL TO THE CONVENTION ON INTERNATIONAL
INTERESTS IN MOBILE EQUIPMENT ON MATTERS SPECIFIC TO AIRCRAFT
EQUIPMENT WHICH SHALL HAVE THE FORCE OF LAW
SECTION Section 25

Untitled Section

4.The applicable law determines whether an interest to which paragraph 2
applies falls within sub-paragraphs (a), (b) or (c) of that paragraph.
SECTION Section 250

Untitled Section

CHAPTER I
Sphere of application and general provisions
SECTION Section 251

Untitled Section

Article I
Defined terms
SECTION Section 252

Untitled Section

1.In this Protocol, except where the context otherwise requires, terms used
in it have the meanings set out in the Convention.
SECTION Section 253

Untitled Section

2.In this Protocol the following terms are employed with the meanings set
out below:
(a)“aircraft” means aircraft as defined for the purposes of the Chicago
Convention which are either airframes with aircraft engines installed
thereon or helicopters;
(b)“aircraft engines” means aircraft engines (other than those used in
military, customs or police services) powered by jet propulsion or turbine or
piston technology and:
(i)in the case of jet propulsion aircraft engines, have at least
1750 lb of thrust or its equivalent; and
(ii) in the case of turbine -powered or piston -powered aircraft
engines, have at least 550 rat ed take -off shaft horsepower or its
equivalent, together with all modules and other installed, incorporated
or attached accessories, parts and equipment and all data, manuals and
records relating thereto;
(c)“aircraft objects” means airframes, aircraft engines and helicopters;
(d)“aircraft register” means a register maintained by a State or a
common mark registering authority for the purposes of the Chicago
Convention;
(e)“airframes” means airframes (other than those used in military,
customs or police s ervices) that, when appropriate aircraft engines are
installed thereon, are type certified by the competent aviation authority to
transport:
(i)at least eight (8) persons including crew; or
(ii) goods in excess of 2750 kilograms, together with all
installed, incorporated or attached accessories, parts and equipment
(other than aircraft engines), and all data, manuals and records relating
thereto;
(f)“authorised party” means the party referred to in Article XIII(3);
(g)“Chicago Convention” means the Convention on International
Civil Aviation, signed at Chicago on 7 December 1944, as amended, and its
Annexes;
(h)“common mark registering authority” means the authority
maintaining a register in accordance with Article 77 of the Chicago Convention
as implemented by the Resolution adopted on 14 December 1967 by the
Council of the International Civil Aviation Organization on nationality and
registration of aircraft operated by international operating agencies;
31
32
(i)“de-registration of the aircraft” means deletion or removal of the
registration of the aircraft from its aircraft register in accordance with the
Chicago Convention;
(j)“guarantee contract” means a contract entered into by a person as
guarantor;
(k)“guarantor” means a person who, for the purpose of assuring
performance of any obligations in favour of a creditor secured by a security
agreement or under an agreement, gives or issues a suretyship or demand
guarantee or a standby letter of credit or any other form of credit insurance;
(l)“helicopters” means heavier-than-air machines (other than those used in
military, customs or police services) supported in flight chiefly by the reactions of
the air on one or more power-driven rotors on substantially vertical axes and
which are type certified by the competent aviation authority to transport:
(i)at least five (5) persons including crew; or
(ii) goods in excess of 450 kilograms, together with all installed,
incorporated or attached accessories, parts and equi pment (including
rotors), and all data, manuals and records relating thereto;
(m)“insolvency-related event” means:
(i)the commencement of the insolvency proceedings; or
(ii) the declared intention to suspend or actual suspension of
payments by the debtor where the creditor’s right to institute insolvency
proceedings against the debtor or to exercise remedies under the
Convention is prevented or suspended by law or State action;
(n)“primary insolvency jurisdiction” means the Contracting State in
which the centre of the debtor’s main interests is situated, which for this
purpose shall be deemed to be the place of the debtor’s statutory seat or, if
there is none, the place where the debtor is incorporated or formed, unless
proved otherwise;
(o)“registry authority” means the national authority or the common
mark registering authority, maintaining an aircraft register in a Contracting
State and responsible for the registration and de-registration of an aircraft in
accordance with the Chicago Convention; and
(p)“State of registry” means, in respect of an aircraft, the State on the
national register of which an aircraft is entered or the State of location of the
common mark registering authority maintaining the aircraft register.
SECTION Section 254

Untitled Section

Article II
Application of Convention as regards aircraft objects
SECTION Section 255

Untitled Section

1.The Convention shall apply in relation to aircraft objects as provided by
the terms of this Protocol.
SECTION Section 256

Untitled Section

2.The Convention and this Protocol shall be known as the Convention on
International Interests in Mobile Equipment as applied to aircraft objects.
SECTION Section 257

Untitled Section

Article III
Application of Convention to sales
The following provisions of the Convention apply as if references to an
agreement creating or providing for an international interest were references to a
contract of sale and as if references to an international interest, a prospective
international interest, the debtor and the creditor were references to a sale, a
prospective sale, the sell er and the buyer respectively: Articles 3 and 4;
SECTION Section 258

Untitled Section

Article 16(1)(a); Article 19(4); Article 20(1) (as regards registration of a contract of
sale or a prospective sale ); Article 25( 2) ( as regards a prospective sale ); and
SECTION Section 259

Untitled Section

Article 30.
33
In addition, the general provisions of Article 1, Article 5, Chapters IV to
VII, Article 29 [other than Article 29(3) which is replaced by Articles XIV(1) and
(2)], Chapter X, Chapter XII (other than Article 43 ), Chapter XIII and Chapter
XIV (other than Article 60) shall apply to contracts of sale and prospective sales.
SECTION Section 26

Untitled Section

5.An international interest in an object extends to proceeds of that object.
SECTION Section 260

Untitled Section

Article IV
Sphere of application
SECTION Section 261

Untitled Section

1.Without prejudice to Article 3(1) of the Convention, the Convention shall
also apply in relation to a helicopter, or to an airframe pertaining to an aircraft,
registered in an aircraft register of a Contracting State which is the State of
registry, and where such registration is made purs uant to an agreement for
registration of the aircraft it is deemed to have been effected at the time of the
agreement.
SECTION Section 262

Untitled Section

2.For the purposes of the definition of “internal transaction” in Article 1 of
the Convention:
(a)an airframe is located in the State of registry of the aircraft of which
it is a part;
(b)an aircraft engine is located in the State of registry of the aircraft
on which it is installed or, if it is not installed on an aircraft, where it is
physically located; and
(c)a helicopter is located in its State of registry, at the time of the
conclusion of the agreement creating or providing for the interest.
SECTION Section 263

Untitled Section

3.The parties may, by agreement in writing, exclude the application of
SECTION Section 264

Untitled Section

Article XI and, in their relations with each other, derogate from or vary the effect
of any of the provisions of this Protocol except Article IX(2)-(4).
SECTION Section 265

Untitled Section

Article V
Formalities, effects and registration of contracts of sale
SECTION Section 266

Untitled Section

1.For the purposes of this Protocol, a contract of sale is one which:
(a)is in writing;
(b)relates to an aircraft object of which the seller has power to
dispose; and
(c)enables the aircraft object to be identified in conformity with this
Protocol.
SECTION Section 267

Untitled Section

2.A contract of sale transfers the interest of the seller in the ai rcraft object
to the buyer according to its terms.
SECTION Section 268

Untitled Section

3.Registration of a contract of sale remains effective indefinitely. Registration
of a prospective sale remains effective unless discharged or until expiry of the
period, if any, specified in the registration.
SECTION Section 269

Untitled Section

Article VI
Representative capacities
A person may enter into an agreement or a sale, and register an international
interest in, or a sale of, an aircraft object, in an agency, trust or other representative
capacity.In such case, that person is entitled to assert rights and interests under
the Convention.
SECTION Section 27

Untitled Section

Article 3
Sphere of application
SECTION Section 270

Untitled Section

Article VII
Description of aircraft objects
A description of an aircraft object that contains its manufacturer’s serial
number, the name of the manufacturer and its model designation is necessary and
sufficient to identify the object for the purposes of Article 7(c) of the Convention
and Article V(1)(c) of this Protocol.
34
Article VIII
Choice of law
SECTION Section 271

Untitled Section

1.This Article applies only where a Contracting State has made a declaration
pursuant to Article XXX(1).
SECTION Section 272

Untitled Section

2.The parties to an agreement, or a contract of sale, or a related guarantee
contract or subordination agreement may agree on the law which is to govern their
contractual rights and obligations, wholly or in part.
SECTION Section 273

Untitled Section

3.Unless otherwise agreed, the reference in the preceding paragraph to the
law chosen by the parties is to the domestic rules of law of the designated State
or, where that State comprises several territorial units, to the domestic law of the
designated territorial unit.
SECTION Section 274

Untitled Section

CHAPTER II
Default remedies, priorities and assignments
SECTION Section 275

Untitled Section

Article IX
Modification of default remedies provisions
SECTION Section 276

Untitled Section

1.In addition to the remedies specified in Chapter III of the Convention, the
creditor may, to the extent that the debtor has at any time so agreed and, in the
circumstances, specified in that Chapter:
(a)procure the de-registration of the aircraft; and
(b)procure the export and physical transfer of the aircraft object from
the territory in which it is situated.
SECTION Section 277

Untitled Section

2.The creditor shall not e xercise the remedies specified in the preceding
paragraph without the prior consent in writing of the holder of any registered
interest ranking in priority to that of the creditor.
SECTION Section 278

Untitled Section

3.Article 8 (3) of the Convention shall not apply to aircraft objects. Any
remedy given by the Convention in relation to an aircraft object shall be exercised
in a commercially reasonable manner. A remedy shall be deemed to be exercised
in a commercially reasonable manner where it is exercised in conformity with a
provision of th e agreement except where such a provision is manifestly
unreasonable.
SECTION Section 279

Untitled Section

4.A chargee giving ten or more working days’ prior written notice of a
proposed sale or lease to interested persons shall be deemed to satisfy the
requirement of providing “reasonable prior notice” specified in Article 8(4) of the
Convention.The foregoing shall not prevent a chargee and a chargor or a
guarantor from agreeing to a longer period of prior notice.
SECTION Section 28

Untitled Section

1.This Convention applies when, at the time of the conclusion of the
agreement creating or providing for the international interest, the debtor is situated
in a Contracting State.
SECTION Section 280

Untitled Section

5.The registry authority in a Contracting State shall, subject to any applicable
safety laws and regulations, honour a request for de-registration and export if:
(a)the request is properly submitted by the authorised party under a
recorded irrevocable de-registration and export request authorisation; and
(b)the authorised party certifies to the registry authority, if required
by that authority, that all registered interests ranking in priority to that of the
creditor in whose favour the authorisation has been issued have been
discharged or that the holders o f such interests have consented to the
de-registration and export.
SECTION Section 281

Untitled Section

6.A chargee proposing to procure the de -registration and export of an
aircraft under paragraph 1 otherwise than pursuant to a court order shall give
reasonable prior notice in writing of the proposed de-registration and export to:
35
(a)interested persons specified in Article 1 (m)(i) and (ii) of the
Convention; and
(b)interested persons specified in Article 1(m)(iii) of the Convention
who have given notice of their rights to the chargee within a reasonable time
prior to the de-registration and export.
SECTION Section 282

Untitled Section

Article X
Modification of provisions regarding relief pending final
determination
SECTION Section 283

Untitled Section

1.This Article applies only where a Contracting State has made a declaration
under Article XXX(2) and to the extent stated in such declaration.
SECTION Section 284

Untitled Section

2.For the purposes of Article 13 (1) of the Convention, “speedy” in the
context of obtaining relief means within such number of working days from the
date of filing of the application for relief as is specified in a declaration made by
the Contracting State in which the application is made.
SECTION Section 285

Untitled Section

3.Article 13(1) of the Convention applies with the following being added
immediately after sub-paragraph (d): “(e) if at any time the debtor and the creditor
specifically agree, sale and application of proceeds therefrom”, and Article 43(2)
applies with the insertion after the words “Article 13(1)(d)” of the words “and (e)”.
SECTION Section 286

Untitled Section

4.Ownership or any other interest of the debtor passing on a sale under the
preceding paragraph is free from any other interest over which the creditor’s
international interest has pr iority under the provisions of Article 29 of the
Convention.
SECTION Section 287

Untitled Section

5.The creditor and the debtor or any other interested person may agree in
writing to exclude the application of Article 13(2) of the Convention.
SECTION Section 288

Untitled Section

6.With regard to the remedies in Article IX(1):
(a)they shall be made available by the registry authority and other
administrative authorities, as applicable, in a Contracting State no later than
five working days after the creditor notifies such authorities that the relief
specified in Article IX (1) is granted or, in the case of relief granted by a
foreign court, recognised by a court of that Contracting State, and that the
creditor is entitled to procure those remedies in accordance with the
Convention; and
(b)the applicable authorities shall expeditiously co-operate with and
assist the creditor in the exercise of such remedies in conformity with the
applicable aviation safety laws and regulations.
SECTION Section 289

Untitled Section

7.Paragraphs 2 and 6 shall not affect any applicable aviation safety laws
and regulations.
SECTION Section 29

Untitled Section

2.The fact that the creditor is situated in a non -Contracting State does not
affect the applicability of this Convention.
SECTION Section 290

Untitled Section

Article XI
Remedies on insolvency
SECTION Section 291

Untitled Section

1.This Article applies only where a Contracting State that is the primary
insolvency jurisdiction has made a declaration pursuant to Article XXX(3).
Alternative A
SECTION Section 292

Untitled Section

2.Upon the occurrence of an insolvency -related event, the insolvency
administrator or the debtor, as applicable, shall, subject to paragraph 7, give
possession of the aircraft object to the creditor no later than the earlier of:
(a)the end of the waiting period; and
36
(b)the date on which the creditor would be entitled to possession of
the aircraft object if this Article did not apply.
SECTION Section 293

Untitled Section

3.For the purposes of this Article, the “waiting period” shall be the period
specified in a declaration of the Contracting State which is the primary insolvency
jurisdiction.
SECTION Section 294

Untitled Section

4.References in this Article to the “insolvency administrator” shall be to
that person in its official, not in its personal, capacity.
SECTION Section 295

Untitled Section

5.Unless and until the creditor is given the opportunity to take possession
under paragraph 2:
(a)the insolvency administrator or the debtor, as applicable, shall
preserve the aircraft object and maintain it and its value in accordance with
the agreement; and
(b)the creditor shall be entitled to apply for any other forms of interim
relief available under the applicable law.
SECTION Section 296

Untitled Section

6.Sub-paragraph (a) of the preceding paragraph shall not preclude the use
of the aircraft object under arrangements designed to preserve the aircraft object
and maintain it and its value.
SECTION Section 297

Untitled Section

7.The insolvency adminis trator or the debtor, as applicable, may retain
possession of the aircraft object where, by the time specified in paragraph 2, it has
cured all defaults other than a default constituted by the opening of insolvency
proceedings and has agreed to perform all future obligations under the agreement.
A second waiting period shall not apply in respect of a default in the performance
of such future obligations.
SECTION Section 298

Untitled Section

8.With regard to the remedies in Article IX(1):
(a)they shall be made available by the registry author ity and the
administrative authorities in a Contracting State, as applicable, no later than
five working days after the date on which the creditor notifies such
authorities that it is entitled to procure those remedies in accordance with
the Convention; and
(b)the applicable authorities shall expeditiously co -operate with and
assist the creditor in the exercise of such remedies in conformity with the
applicable aviation safety laws and regulations.
SECTION Section 299

Untitled Section

9.No exercise of remedies permitted by the Convention or this Protocol may
be prevented or delayed after the date specified in paragraph 2.
SECTION Section 3

Untitled Section

2.(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;
Short title and
commencement.
Definitions.
Application of
Convention and
Protocol in
India.
Power of
registry
authority to
issue directions.
Obligation of
debtor and
creditor to an
agreement.
(b)“aircraft” shall have the meaning assigned to it in Article I (2)(a) of
the Protocol;
(c)“aircraft objects” shall have the meaning assigned to it in
SECTION Section 30

Untitled Section

Article 4
Where debtor is situated
SECTION Section 300

Untitled Section

10.No obligations of the debtor under the agreement may be modified
without the consent of the creditor.
SECTION Section 301

Untitled Section

11.Nothing in the preceding paragraph shall be construed to affect the
authority, if any, of the insolvency administrator under the applicable law to
terminate the agreement.
SECTION Section 302

Untitled Section

12.No rights or interests, except for non-consensual rights or interests of a
category covered by a declaration pursuant to Article 39(1), shall have priority in
insolvency proceedings over registered interests.
SECTION Section 303

Untitled Section

13.The Convention as modified by Article IX of this Protocol shall apply
to the exercise of any remedies under this Article.
Alternative B
SECTION Section 304

Untitled Section

2.Upon the occurrence of an insolvency -related ev ent, the insolvency
administrator or the debtor, as applicable, upon the request of the creditor, shall
give notice to the creditor within the time specified in a declaration of a
Contracting State pursuant to Article XXX(3) whether it will:
37
(a)cure all defaults other than a default constituted by the opening of
insolvency proceedings and agree to perform all future obligations, under
the agreement and related transaction documents; or
(b)give the creditor the opportunity to take possession of the aircraft
object, in accordance with the applicable law.
SECTION Section 305

Untitled Section

3.The applicable law referred to in sub -paragraph (b) of the preceding
paragraph may permit the court to require the taking of any additional step or the
provision of any additional guarantee.
SECTION Section 306

Untitled Section

4.The creditor shall provide evidence of its claims and proof that its
international interest has been registered.
SECTION Section 307

Untitled Section

5.If the insolvency administrator or the debtor, as applicable, does not give
notice in conformity with paragraph 2, or when the insolvency a dministrator or
the debtor has declared that it will give the creditor the opportunity to take
possession of the aircraft object but fails to do so, the court may permit the creditor
to take possession of the aircraft object upon such terms as the court ma y order
and may require the taking of any additional step or the provision of any additional
guarantee.
SECTION Section 308

Untitled Section

6.The aircraft object shall not be sold pending a decision by a court regarding
the claim and the international interest.
SECTION Section 309

Untitled Section

Article XII
Insolvency assistance
SECTION Section 31

Untitled Section

1.For the purposes of Article 3(1), the debtor is situated in any Contracting
State:
(a)under the law of which it is incorporated or formed;
(b)where it has its registered office or statutory seat;
(c)where it has its center of administration; or
(d)where it has its place of business.
SECTION Section 310

Untitled Section

1.This Article applies only where a Contracting State has made a
declaration pursuant to Article XXX(1).
SECTION Section 311

Untitled Section

2.The courts of a Contracting State in which an aircraft object is situated
shall, in accordance with the law of the Contracting State, co -operate to the
maximum extent possible with foreign courts and foreign insolvency
administrators in carrying out the provisions of Article XI.
SECTION Section 312

Untitled Section

Article XIII
De-registration and export request authorisation
SECTION Section 313

Untitled Section

1.This Article applies only where a Contracting State has made a declaration
pursuant to Article XXX(1).
SECTION Section 314

Untitled Section

2.Where the debtor has issued an irrevocable de -registration and export
request authorisation substantially in the form annexed to this Protocol and has
submitted such authorisation for recordation to the registry authority, that
authorisation shall be so recorded.
SECTION Section 315

Untitled Section

3.The person in whose favour the authorisation has been issued
(the “authorised party”) or its certified designee shall be the sole person entitled
to exercise the remedies specified in Article IX (1) and may do so only in
accordance with the authorisation and applicable aviation safety laws and
regulations.Such authorisation may not be revo ked by the debtor without the
consent in writing of the authorised party. The registry authority shall remove an
authorisation from the registry at the request of the authorised party.
SECTION Section 316

Untitled Section

4.The registry authority and other administrative authorities in Contracting
States shall expeditiously co -operate with and assist the authorised party in the
exercise of the remedies specified in Article IX.
SECTION Section 317

Untitled Section

Article XIV
Modification of priority provisions
SECTION Section 318

Untitled Section

1.A buyer of an aircraft object under a registered sale acquires its interest in
that object free from an interest subsequently registered and from an unregistered
interest, even if the buyer has actual knowledge of the unregistered interest.
38
2.A buyer of an aircraft object acquires its interest in that object subject to
an interest registered at the time of its acquisition.
SECTION Section 319

Untitled Section

3.Ownership of or another right or interest in an aircraft engine shall not be
affected by its installation on or removal from an aircraft.
SECTION Section 32

Untitled Section

2.A reference in sub-paragraph (d) of the preceding paragraph to the debtor’s
place of business shall, if it has more than one place of business, mean its principal
place of business or, if it has no place of business, its habitual residence.
SECTION Section 320

Untitled Section

4.Article 29(7) of the Convention applies to an item, other than an object,
installed on an airframe, aircraft engine or helicopter.
SECTION Section 321

Untitled Section

Article XV
Modification of assignment provisions
SECTION Section 322

Untitled Section

Article 33 (1) of the Convention applies as if the following were added
immediately after sub-paragraph (b): “and (c) the debtor has consented in writing,
whether or not the consent is given in advance of the assignment or identifies the
assignee.”.
SECTION Section 323

Untitled Section

Article XVI
Debtor provisions
SECTION Section 324

Untitled Section

1.In the absence of a default within the meaning of Article 11 of the
Convention, the debtor shall be entitled to the quiet possession and use of the
object in accordance with the agreement as against:
(a)its creditor and the holder of any inte rest from which the debtor
takes free pursuant to Article 29(4) of the Convention or, in the capacity of
buyer, Article XIV (1) of this Protocol, unless and to the extent that the
debtor has otherwise agreed; and
(b)the holder of any interest to which the debtor’s right or interest is
subject pursuant to Article 29 (4) of the Convention or, in the capacity of
buyer, Article XIV (2) of this Protocol, but only to the extent, if any, that
such holder has agreed.
SECTION Section 325

Untitled Section

2.Nothing in the Convention or this Protocol affe cts the liability of a
creditor for any breach of the agreement under the applicable law in so far as that
agreement relates to an aircraft object.
SECTION Section 326

Untitled Section

CHAPTER III
Registry provisions relating to international interests in aircraft objects
SECTION Section 327

Untitled Section

Article XVII
The Supervisory Authority and the Registrar
SECTION Section 328

Untitled Section

1.The Supervisory Authority shall be the international entity designated by
a Resolution adopted by the Diplomatic Conference to Adopt a Mobile Equipment
Convention and an Aircraft Protocol.
SECTION Section 329

Untitled Section

2.Where the internation al entity referred to in the preceding paragraph is
not able and willing to act as Supervisory Authority, a Conference of Signatory
and Contracting States shall be convened to designate another Supervisory
Authority.
SECTION Section 33

Untitled Section

Article 5
Interpretation and applicable law
SECTION Section 330

Untitled Section

3.The Supervisory Authority and its of ficers and employees shall enjoy
such immunity from legal and administrative process as is provided under the
rules applicable to them as an international entity or otherwise.
SECTION Section 331

Untitled Section

4.The Supervisory Authority may establish a commission of experts, from
among persons nominated by Signatory and Contracting States and having the
necessary qualifications and experience, and entrust it with the task of assisting
the Supervisory Authority in the discharge of its functions.
39
5.The first Registrar shall operate the International Registry for a period of
five years from the date of entry into force of this Protocol. Thereafter, the
Registrar shall be appointed or reappointed at regular five-yearly intervals by the
Supervisory Authority.
SECTION Section 332

Untitled Section

Article XVIII
First regulations
The first regulations shall be made by the Supervisory Authority so as to
take effect upon the entry into force of this Protocol.
SECTION Section 333

Untitled Section

Article XIX
Designated entry points
SECTION Section 334

Untitled Section

1.Subject to paragraph 2, a Contracting State may at any time designate an
entity or entities in its territory as the entry point or entry points through which
there shall or may be transmitted to the International Registry information
required for registration other than registration of a notice of a national interest or
a right or interest under Article 40 in either case arising under the laws of another
State.
SECTION Section 335

Untitled Section

2.A designation made under the preceding paragraph may permit, but not
compel, use of a designated entry point or entry points for information required
for registrations in respect of aircraft engines.
SECTION Section 336

Untitled Section

Article XX
Additional modifications to Registry provisions
SECTION Section 337

Untitled Section

1.For the purposes of Article 19 (6) of the Convention, the search criteria
for an aircraft object shall be the name of its manufacturer, its manufacturer’s
serial number and its model designation, supplemented as necessary to ensure
uniqueness.Such supplementary information shall be specified in the regulations.
SECTION Section 338

Untitled Section

2.For the purposes of Article 25 (2) of the Convention and in the
circumstances there described, the holder of a registered prospective international
interest or a registered prospective assignment of an international interest or th e
person in whose favour a prospective sale has been registered shall take such steps
as are within its power to procure the discharge of the registration no later than
five working days after the receipt of the demand described in such paragraph.
SECTION Section 339

Untitled Section

3.The f ees referred to in Article 17 (2)(h) of the Convention shall be
determined so as to recover the reasonable costs of establishing, operating and
regulating the International Registry and the reasonable costs of the Supervisory
Authority associated with the p erformance of the functions, exercise of the
powers, and discharge of the duties contemplated by Article 17 (2) of the
Convention.
SECTION Section 34

Untitled Section

1.In the interpretation of this convention, regard is to be had to its purposes
as set forth in the preamble, to its international character and to the need to
promote uniformity and predictability in its application.
SECTION Section 340

Untitled Section

4.The centralised functions of the International Registry shall be operated
and administered by the Registrar on a twenty-four hour basis. The various entry
points shall be operated at least during working hours in their respective
territories.
SECTION Section 341

Untitled Section

5.The amount of the insurance or financial guarantee referred to in
SECTION Section 342

Untitled Section

Article 28(4) of the Convention shall, in respect of each event, not be less than the
maximum value of an aircraft object as determined by the Supervisory Authority.
SECTION Section 343

Untitled Section

6.Nothing in the Convention shall preclude the Registrar from procuring
insurance or a financial guarantee covering events for which the Registrar is not
liable under Article 28 of the Convention.
40
CHAPTER IV
Jurisdiction
SECTION Section 344

Untitled Section

Article XXI
Modification of jurisdiction provisions
For the purposes of Article 43 of the Convention and subject to Article 42
of the Convention, a court of a Contracting State also has jurisdiction where the
object is a helicopter, or an airframe pertaining to an aircraft, for which that State
is the State of registry.
SECTION Section 345

Untitled Section

Article XXII
Waivers of sovereign immunity
SECTION Section 346

Untitled Section

1.Subject to paragraph 2, a waiver of sovereign immunity from jurisdiction
of the courts specified in Article 42 or Article 43 of the Convention or relating to
enforcement of rights and interests relating to an aircraft object under the
Convention shall be binding and, if the other conditions to such jurisdiction or
enforcement have been satisfied, shall be effective to confer jurisdiction and
permit enforcement, as the case may be.
SECTION Section 347

Untitled Section

2.A waiver under the preceding paragraph must be in writing and contain a
description of the aircraft object.
SECTION Section 348

Untitled Section

CHAPTER V
Relationship with other conventions
SECTION Section 349

Untitled Section

Article XXIII
Relationship with the Convention on the International Recognition of
Rights in Aircraft
The Convention shall, for a Contracting State that is a party to the
Convention on the International Recogniti on of Rights in Aircraft, signed at
Geneva on 19 June 1948, supersede that Convention as it relates to aircraft, as
defined in this Protocol, and to aircraft objects. However, with respect to rights or
interests not covered or affected by the present Conve ntion, the Geneva
Convention shall not be superseded.
SECTION Section 35

Untitled Section

2.Questions concerning matters governed by this convention which are not
expressly settled in it are to be settled in conformity with the general principles
on which it is based or, in the absence of such principles, in conformity with the
applicable law.
SECTION Section 350

Untitled Section

Article XXIV
Relationship with the Convention for the Unification of Certain Rules
Relating to the Precautionary Attachment of Aircraft
SECTION Section 351

Untitled Section

1.The Convention shall, for a Contracting State that is a Party t o the
Convention for the Unification of Certain Rules Relating to the Precautionary
Attachment of Aircraft, signed at Rome on 29 May 1933, supersede that
Convention as it relates to aircraft, as defined in this Protocol.
SECTION Section 352

Untitled Section

2.A Contracting State Party to the above Convention may declare, at the
time of ratification, acceptance, approval of, or accession to this Protocol, that it
will not apply this Article.
SECTION Section 353

Untitled Section

Article XXV
Relationship with the UNIDROIT Convention on International
Financial Leasing
The Convention shall supersede the UNIDROIT Convention on International
Financial Leasing, signed at Ottawa on 28 May 1988, as it relates to aircraft
objects.
41
CHAPTER VI
Final provisions
SECTION Section 354

Untitled Section

Article XXVI
Signature, ratification, acceptance, approval or accession
SECTION Section 355

Untitled Section

1.This Protocol shall be open for signature in Cape Town on
16 November 2001 by States participating in the Diplomatic Conference to Adopt
a Mobile Equipment Convention and an Aircraft Protocol held at Cape Town from
29 October to 16 November 2001. After 16 November 2001, this Protocol shall
be open to all States for signature at the Headquarters of the International Institute
for the Unification of Private Law (UNIDROIT) in Rome until it enters into force
in accordance with Article XXVIII.
SECTION Section 356

Untitled Section

2.This Protocol shall be subject to ratification, acceptance or approval by
States which have signed it.
SECTION Section 357

Untitled Section

3.Any State which does not sign this Protocol may accede to it at any time.
SECTION Section 358

Untitled Section

4.Ratification, acceptance, approval or accession is effected by the deposit
of a formal instrument to that effect with the Depositary.
SECTION Section 359

Untitled Section

5.A State may not become a Party to this Protocol unless it is or becomes
also a Party to the Convention.
SECTION Section 36

Untitled Section

3.References to the applicable law are to the domestic rules of the law
applicable by virtue of the rules of private international law of the forum State.
9
4.Where a State comprises several territorial units, each of which has its
own rules of law in respect of the matter to be decided, and where there is no
indication of the relevant territorial unit, the law of that State decides which is the
territorial unit whose rules shall govern. In the absence of any such rule, the law
of the territorial unit with which the case is most closely connected shall apply.
SECTION Section 360

Untitled Section

Article XXVII
Regional Economic Integration Organisations
SECTION Section 361

Untitled Section

1.A Regional Economic Integration Organisation which is constituted by
sovereign States and has competence over certain matters governed by this
Protocol may similarly sign, accept, approve or accede to this Protocol. The
Regional Economic Integration Organisation shall in that case have the rights and
obligations of a Contracting State, to the extent that that Organisation has
competence over matters governed by this Protocol. Where the number of
Contracting States is relevant in this Protocol, the Regional Economic Integration
Organisation shall not count as a Contracting State in addition to its Member
States which are Contracting States.
SECTION Section 362

Untitled Section

2.The Regional Economic Integration Organisation shall, at the time of
signature, acceptance, approval or accession, make a declaration to the Depositary
specifying the matters governed by this Protocol in respect of which competence
has been transferred to that Organisation by its Member States. The Regional
Economic Integration Organisation shall promptly notify the Depos itary of any
changes to the distribution of competence, including new transfers of competence,
specified in the declaration under this paragraph.
SECTION Section 363

Untitled Section

3.Any reference to a “Contracting State” or “Contracting States” or “State
Party” or “States Parties” in this Protocol applies equally to a Regional Economic
Integration Organisation where the context so requires.
SECTION Section 364

Untitled Section

Article XXVIII
Entry into force
SECTION Section 365

Untitled Section

1.This Protocol enters into force on the first day of the month following the
expiration of three months after the date of the deposit of the eighth instrument of
ratification, acceptance, approval or accession, between the States which have
deposited such instruments.
SECTION Section 366

Untitled Section

2.For other States this Protocol enters into force on the first day of the
month following the expiration of three months after the date of the deposit of its
instrument of ratification, acceptance, approval or accession.
42
Article XXIX
Territorial units
SECTION Section 367

Untitled Section

1.If a Contracting State has territorial units in which different systems of
law are applicable in relation to the matters dealt with in this Protocol, it may, at
the time of ratification, acceptance, approval or accession, declare that this
Protocol is to extend to all its territorial units or only to one or more of them and
may modify its declaration by submitting another declaration at any time.
SECTION Section 368

Untitled Section

2.Any such declaration shall state expressly the territorial units to which
this Protocol applies.
SECTION Section 369

Untitled Section

3.If a Contracting State has not made any declaration under paragraph 1,
this Protocol shall apply to all territorial units of that State.
SECTION Section 37

Untitled Section

Article 6
Relationship between the Convention and the Protocol
SECTION Section 370

Untitled Section

4.Where a Contracting State extends this Protocol to one or more of its
territorial units, declarations permitted under this Protocol may be made in respect
of each such territorial unit, and the declarations made in respect of one territorial
unit may be different from those made in respect of another territorial unit.
SECTION Section 371

Untitled Section

5.If by virtue of a declaration under paragraph 1, this Protocol extends to
one or more territorial units of a Contracting State:
(a)the debtor is considered to be situated in a Contracting State only
if it is incorporated or formed under a law in force in a territorial unit to
which the Convention and this Protocol apply or if it has its registered office
or statutory seat, centre of administration, place of business or habitual
residence in a territorial unit to which the Convention and this Protocol
apply;
(b)any reference to the location of the object in a Contracting State
refers to the location of the object in a territorial unit to which the Convention
and this Protocol apply; and
(c)any reference to the administrative authorities in that Contracting
State shall be construed as referring to the administrative authorities having
jurisdiction in a territorial unit to which the Con vention and this Protocol
apply and any reference to the national register or to the registry authority
in that Contracting State shall be construed as referring to the aircraft
register in force or to the registry authority having jurisdiction in the
territorial unit or units to which the Convention and this Protocol apply.
SECTION Section 372

Untitled Section

Article XXX
Declarations relating to certain provisions
SECTION Section 373

Untitled Section

1.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to this Protocol, declare that it will apply any one or more of
SECTION Section 374

Untitled Section

Articles VIII, XII and XIII of this Protocol.
SECTION Section 375

Untitled Section

2.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to this Protocol, declare that it will apply Article X of this
Protocol, wholly or in part. If it so declares with respect to Article X (2), it shall
specify the time-period required thereby.
SECTION Section 376

Untitled Section

3.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to this Protocol, declare that it will apply the entirety of Alternative
A, or the entirety of Alternative B of Article XI and, if so, shall specify the types of
insolvency proceeding, if any, to which it will apply Alternative A and the types of
insolvency proceeding, if any, to which it will apply Alternative B. A Contracting
State making a declaration pursuant to this paragraph shall specify the time-period
required by Article XI.
43
4.The courts of Contracting States shall apply Article XI in conformity with
the declaration made by the Contracting State which is the primary insolvency
jurisdiction.
SECTION Section 377

Untitled Section

5.A Contracting State may, at the time of ratification, acceptance, approval
of, or accession to this Protocol, declare that it will not apply the provisions of
SECTION Section 378

Untitled Section

Article XXI, wholly or in part . The declaration shall specify under which
conditions the relevant Article will be applied, in case it will be applied partly, or
otherwise which other forms of interim relief will be applied.
SECTION Section 379

Untitled Section

Article XXXI
Declarations under the Convention
Declarations ma de under the Convention, including those made under
SECTION Section 38

Untitled Section

1.This Convention and the Protocol shall be read and interpreted together
as a single instrument.
SECTION Section 380

Untitled Section

Articles 39, 40, 50, 53, 54, 55, 57, 58 and 60 of the Convention, shall be deemed
to have also been made under this Protocol unless stated otherwise.
SECTION Section 381

Untitled Section

Article XXXII
Reservations and declarations
SECTION Section 382

Untitled Section

1.No reservations may be made to this Protocol but declarations authorised
by Articles XXIV, XXIX, XXX, XXXI, XXXIII and XXXIV may be made in
accordance with these provisions.
SECTION Section 383

Untitled Section

2.Any declaration or subsequent declaration or any withdrawal of a declaration
made under this Protocol shall be notified in writing to the Depositary.
SECTION Section 384

Untitled Section

Article XXXIII
Subsequent declarations
SECTION Section 385

Untitled Section

1.A State Party may make a subsequent declaration, other than a declaration
made in accordance with Article XXXI under Article 60 of the Convention, at any
time after the date on which this Protocol has entered into force for it, by notifying
the Depositary to that effect.
SECTION Section 386

Untitled Section

2.Any such subsequent declaration shall take effect on the first day of the
month following the expiration of six months after the date of receipt of the
notification by the Depositary. Where a longer period for that declaration to take
effect is specified in the notification, it shall take effect upon the expiration of
such longer period after receipt of the notification by the Depositary.
SECTION Section 387

Untitled Section

3.Notwithstanding the previous paragraphs, this Protocol shall continue to
apply, as if no such subsequent declarations had been made, in respect of all rights
and interests arising prior to the effective date of any such subsequent declaration.
SECTION Section 388

Untitled Section

Article XXXIV
Withdrawal of declaration
SECTION Section 389

Untitled Section

1.Any State Party having made a declaration under this Protocol, other than
a declaration made in accordance with Article XXXI under Article 60 of the
Convention, may withdraw it at any time by no tifying the Depositary. Such
withdrawal is to take effect on the first day of the month following the expiration
of six months after the date of receipt of the notification by the Depositary.
SECTION Section 39

Untitled Section

2.To the extent of any inconsistency between this Convention and the
Protocol, the Protocol shall prevail.
SECTION Section 390

Untitled Section

2.Notwithstanding the previous paragraph, this Protocol shall c ontinue to
apply, as if no such withdrawal of declaration had been made, in respect of all
rights and interests arising prior to the effective date of any such withdrawal.
SECTION Section 391

Untitled Section

Article XXXV
Denunciations
SECTION Section 392

Untitled Section

1.Any State Party may denounce this Protocol by notification in writing to
the Depositary.
44
2.Any such denunciation shall take effect on the first day of the month
following the expiration of twelve months after the date of receipt of the
notification by the Depositary.
SECTION Section 393

Untitled Section

3.Notwithstanding the previous paragraphs, this Protocol shall continue to
apply, as if no such denunciation had been made, in respect of all rights and
interests arising prior to the effective date of any such denunciation.
SECTION Section 394

Untitled Section

Article XXXVI
Review Conferences, amendments and related matters
SECTION Section 395

Untitled Section

1.The Depositary, in consultation with the Supervisory Authority, shall
prepare reports yearly, or at such other time as the circumstances may require, for
the States Parties as to the manner in which the international regim e established
in the Convention as amended by this Protocol has operated in practice. In
preparing such reports, the Depositary shall take into account the reports of the
Supervisory Authority concerning the functioning of the international registration
system.
SECTION Section 396

Untitled Section

2.At the request of not less than twenty-five per cent. of the States Parties,
Review Conferences of the States Parties shall be convened from time to time by
the Depositary, in consultation with the Supervisory Authority, to consider:
(a)the pract ical operation of the Convention as amended by this
Protocol and its effectiveness in facilitating the asset -based financing and
leasing of the objects covered by its terms;
(b)the judicial interpretation given to, and the application made of the
terms of this Protocol and the regulations;
(c)the functioning of the international registration system, the
performance of the Registrar and its oversight by the Supervisory Authority,
taking into account the reports of the Supervisory Authority; and
(d)whether any modifications to this Protocol or the arrangements
relating to the International Registry are desirable.
SECTION Section 397

Untitled Section

3.Any amendment to this Protocol shall be approved by at least a two-thirds
majority of States Parties participating in the Conference referred t o in the
preceding paragraph and shall then enter into force in respect of States which have
ratified, accepted or approved such amendment when it has been ratified, accepted
or approved by eight States in accordance with the provisions of Article XXVIII
relating to its entry into force.
SECTION Section 398

Untitled Section

Article XXXVII
Depositary and its functions
SECTION Section 399

Untitled Section

1.Instruments of ratification, acceptance, approval or accession shall be
deposited with the International Institute for the Unification of Private Law
(UNIDROIT), which is hereby designated the Depositary.
SECTION Section 4

Untitled Section

Article I (2)(c) 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
SECTION Section 40

Untitled Section

CHAPTER II
CONSTITUTION OF AN INTERNATIONAL INTEREST
SECTION Section 400

Untitled Section

2.The Depositary shall:
(a)inform all Contracting States of:
(i)each new signature or deposit of an instrument of ratification,
acceptance, approval or accession, together with the date thereof;
(ii) the date of entry into force of this Protocol;
(iii) each declaration made in accordance with this Protocol,
together with the date thereof; and
45
(iv) the withdrawal or amendment of any declaration, together
with the date thereof;
(v)the notification of any denunciation of this Protocol together
with the date thereof and the date on which it takes effect;
(b)transmit certified true copies of this Protocol to all Contracting
States;
(c)provide the Supervisory Authority and the Registrar with a copy of
each instrument of ratification, acceptance, approval or accession, together
with the date of deposit thereof , of each declaration or withdrawal or
amendment of a declaration and of each notification of denunciation,
together with the date of notification thereof, so that the information
contained therein is easily and fully available; and
(d)perform such other functions customary for depositaries.
46
STATEMENT OF OBJECTS AND REASONS
India acceded to the Convention on International Interests in Mobile
Equipment (2001) (hereinafter referred to as the “Convention”) and Protocol to
the “Convention” on International Interests in Mobile Equipment on Matters
specific to Aircraft Equipment (2 001) (hereinafter referred to as “Protocol”) in
year 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 heli copters, by facilitating
asset-based financing, reducing creditor risk, and ensuring legal predictability in
cases of default or insolvency.
SECTION Section 401

Untitled Section

2.The Protection of Interests in Aircraft Objects Bill, 2025 proposes to
provide for protection of interests in aircraft objects and gives force of law to the
Convention and the Protocol in India, subject to the provisions of this Bill, and
for matters connected therewith or incidental thereto.
SECTION Section 402

Untitled Section

3.The aforesaid Bill, inter alia, seeks to—
(a)give force of law to the Convention and the Protocol, subject to the
provisions of this Bill, and in accordance with the declarations deposited by
India at the time of accession;
(b)confer power upon the Directorate General of Civil Aviation to
function as Registry Authority f or the implementation of the Convention
and the Protocol;
(c)provide for the obligations of debtors and creditors towards the
Registry Authority for submission of dues and exercising remedies in cases
of default;
(d)adopt the remedies available to a cre ditor under Article XI of the
Protocol;
(e)apply the provisions for de -registration and export request
authorisation;
(f)confer jurisdiction upon the High Court for the purposes of the
SECTION Section 403

Untitled Section

Article 53 of the Convention;
(g)give overriding effect to the Act to the extent of inconsistency with
any other law and to retain the power of the Central Government and other
entities to arrest or detain an aircraft object, under domestic law, for the
payment of dues directly related to the service provided in respe ct of the
aircraft object.
SECTION Section 404

Untitled Section

4.The Bill seeks to achieve the above objectives.
NEW DELHI; RAMMOHAN NAIDU KINJARAPU.
The 29th January, 2025.
46
47
FINANCIAL MEMORANDUM
The Bill, if enacted, would not involve any expenditure, either recurring or
non-recurring, from and out of the Consolidated Fund of India.
47
48
MEMORANDUM REGARDING DELEGATED LEGISLATION
SECTION Section 405

Untitled Section

Clause 10 of the Bill seeks to confer power upon the Central Government to
make rules for the purposes of carrying out the provisions of the Bill, inter alia,
to provide for the manner to issue directions under clause 4; and the form and
manner under sub-clauses (1) and (2) of clause 5.
SECTION Section 406

Untitled Section

2.The rules made by the Central Government under said clause 10 of the
Bill, shall be laid as soon as they are made before each House of Parliament.
SECTION Section 407

Untitled Section

3.The matters in respect of which rules may be made are matters of
procedure or administrative details and it is not practicable to provide for them in
the Bill itself. The delegation of legislative powers is, therefore, of a normal
character.
48
RAJYA SABHA
————
A
BILL
to provide for protection of interests in aircraft objects and to implement 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, each signed at Cape Town on
16th November, 2001 and for matters connected therewith or incidental
thereto.
————
(Shri Rammohan Naidu Kinjarapu, Minister of Civil Aviation)
RS-P&PS-GB(E) – 003 – 04.02.2025
SECTION Section 41

Untitled Section

Article 7
Formal requirements
An interest is constituted as an international interest under this convention
where the agreement creating or providing for the interest:
(a)is in writing;
(b)relates to an object of which the chargor, conditional seller or lessor
has power to dispose;
(c)enables the object to be identified in conformity with the Protocol; and
(d)in the case of a security agreement, enables the secured obligations
to be deter mined, but without the need to state a sum or maximum sum
secured.
SECTION Section 42

Untitled Section

CHAPTER III
DEFAULT REMEDIES
SECTION Section 43

Untitled Section

Article 8
Remedies of chargee
SECTION Section 44

Untitled Section

1.In the event of default as provided in Article 11, the chargee may, to the
extent that the chargor has at any time so agreed an d subject to any declaration
that may be made by a Contracting State under Article 54, exercise any one or
more of the following remedies:
(a)take possession or control of any object charged to it;
(b)sell or grant a lease of any such object;
(c)collect or receive any income or profits arising from the management
or use of any such object.
SECTION Section 45

Untitled Section

2.The chargee may alternatively apply for a court order authorising or
directing any of the acts referred to in the preceding paragraph.
SECTION Section 46

Untitled Section

3.Any remedy set out in sub-paragraphs (a), (b) or (c) of paragraph 1 or by
SECTION Section 47

Untitled Section

Article 13 shall be exercised in a commercially reasonable manner. A remedy
shall be deemed to be exercised in a commercially reasonable manner where it is
exercised in conformity with a provision of the security agreement except where
such a provision is manifestly unreasonable.
10
4.A chargee proposing to sell or grant a lease of an object under paragraph 1
shall give reasonable prior notice in writing of the proposed sale or lease to:
(a)interested persons specified in Article 1(m)(i) and (ii); and
(b)interested persons specified in Article 1 (m)(iii) who have given
notice of their rights to the chargee within a reasonable time prior to the sale
or lease.
SECTION Section 48

Untitled Section

5.Any sum collected or received by the chargee as a result of exercise of
any of the remedies set out in paragraph 1 or 2 shall be applied towards discharge
of the amount of the secured obligations.
SECTION Section 49

Untitled Section

6.Where the sums collected or received by the chargee as a result of the
exercise of any remedy set out in paragraph 1 or 2 exceed the amount secured by
the security interest and any reasonable costs incurred in the exercise of any such
remedy, then unless otherwise ordered by the court the chargee shall distribute the
surplus among holders of subsequently ranking interests which have been
registered or of which the chargee has been given notice, in order of priority, and
pay any remaining balance to the chargor.
SECTION Section 5

Untitled Section

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.
(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 Section 50

Untitled Section

Article 9
Vesting of object in satisfaction; redemption
SECTION Section 51

Untitled Section

1.At any time after default as provided in Article 11, the chargee and all the
interested persons may agree that ownership of (or any other interest of the
chargor in) any object covered by the security interest shall vest in the chargee in
or towards satisfaction of the secured obligations.
SECTION Section 52

Untitled Section

2.The court may on the application of the chargee order that ownership of
(or any other interest of the chargor in) any object covered by the security interest
shall vest in the chargee in or towards satisfaction of the secured obligations.
SECTION Section 53

Untitled Section

3.The court shall grant an application under the preceding paragraph only
if the amount of the secured obligations to be satisfie d by such vesting is
commensurate with the value of the object after taking account of any payment to
be made by the chargee to any of the interested persons.
SECTION Section 54

Untitled Section

4.At any time after default as provided under Article 11 and before sale of
the charged object or the making of an order under paragraph 2, the chargor or
any interested person may discharge the security interest by paying in full the
amount secured, subject to any lease granted by the chargee under Article 8(1)(b)
or ordered under Article 8(2). Where, after such default, the payment of the amount
secured is made in full by an interested person other than the debtor, that person
is subrogated to the rights of the chargee.
SECTION Section 55

Untitled Section

5.Ownership or any other interest of the chargor passing on a sale under
SECTION Section 56

Untitled Section

Article 8(1)(b) or passing under paragraph 1 or 2 of this article is free from any
other interest over which the chargee’s security interest has priority under the
provisions of Article 29.
SECTION Section 57

Untitled Section

Article 10
Remedies of conditional seller or lessor
In the event of default under a title reservation agreement or under a leasing
agreement as provided in Article 11, the conditional seller or the lessor, as the
case may be, may:
(a)subject to any declaration that may be made by a Contracting State
under Article 54, terminate the agreement and take possession or control of
any object to which the agreement relates; or
(b)apply for a court order authorising or directing either of these acts.
11
Article 11
Meaning of default
SECTION Section 58

Untitled Section

1.The debtor and the creditor may at any time agree in writing as to the
events that constitute a default or otherwise give rise to the rights and remedies
specified in Articles 8 to 10 and 13.
SECTION Section 59

Untitled Section

2.Where the debtor and the creditor have not so agreed, “def ault” for the
purposes of Articles 8 to 10 and 13 means a default which substantially deprives
the creditor of what it is entitled to expect under the agreement.
SECTION Section 6

Untitled Section

3.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 Section 60

Untitled Section

Article 12
Additional remedies
Any additional remedies permitted by the applicable law, including any
remedies agreed upon by the parties, may be exercised to the extent that they are
not inconsistent with the mandatory provisions of this Chapter as set out in
SECTION Section 61

Untitled Section

Article 15.
SECTION Section 62

Untitled Section

Article 13
Relief pending final determination
SECTION Section 63

Untitled Section

1.Subject to any declaration that it may make under Article 55,
a Contracting State shall ensure that a creditor who adduces evidence of default
by the debtor may, pending final determination of its claim and to the extent that
the debtor has at any time so agreed, obtain from a court speedy relief in the form
of such one or more of the following orders as the creditor requests:
(a)preservation of the object and its value;
(b)possession, control or custody of the object;
(c)immobilisation of the object; and
(d)lease or, except where covered by sub -paragraphs (a) to (c),
management of the object and the income therefrom.
SECTION Section 64

Untitled Section

2.In making any order under the preceding paragraph, the court may impose
such terms as it considers necessary to protect the interested persons in the event
that the creditor:
(a)in implementing any order granting such relief, fails to perform
any of its obligations to the debtor under this Convention or the Protocol; or
(b)fails to establish its claim, wholly or in part, on the final determination
of that claim.
SECTION Section 65

Untitled Section

3.Before making any order under paragraph 1, the court may require notice
of the request to be given to any of the interested persons.
SECTION Section 66

Untitled Section

4.Nothing in this Article affects the application of Article 8(3) or limits the
availability of forms of interim relief other than those set out in paragraph 1.
SECTION Section 67

Untitled Section

Article 14
Procedural requirements
Subject to Article 54 (2), any remedy provided by this Chapter shall be
exercised in conformity with the procedure prescribed by the law of the place
where the remedy is to be exercised.
12
Article 15
Derogation
In their relations with each other, any two or more of the parties referred to
in this Chapter may at any time, by agreement in writing, derogate from or vary
the effect of any of the preceding provisions of this Chapter except Articles 8 (3)
to (6), 9(3) and (4),13(2) and 14.
SECTION Section 68

Untitled Section

CHAPTER IV
THE INTERNATIONAL REGISTRATION SYSTEM
SECTION Section 69

Untitled Section

Article 16
The International Registry
SECTION Section 7

Untitled Section

4.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 Section 70

Untitled Section

1.An International Registry shall be established for registrations of:
(a)international interests, prospective international interests and
registrable non-consensual rights and interests;
(b)assignments and prospective assignments of international interests;
(c)acquisitions of international interests by legal or contractual
subrogations under the applicable law;
(d)notices of national interests; and
(e)subordinations of interests referred to in any of the preceding
sub-paragraphs.
SECTION Section 71

Untitled Section

2.Different international registries may be established for different
categories of object and associated rights.
SECTION Section 72

Untitled Section

3.For the purposes of this Chapter and Chapter V, the term “registration”
includes, where appropriate, an amendment, extensi on or discharge of a
registration.
SECTION Section 73

Untitled Section

Article 17
The Supervisory Authority and the Registrar
SECTION Section 74

Untitled Section

1.There shall be a supervisory authority as provided by the Protocol.
SECTION Section 75

Untitled Section

2.The supervisory authority shall:
(a)establish or provide for the establishment of the inter national
registry;
(b)except as otherwise provided by the Protocol, appoint and dismiss
the Registrar;
(c)ensure that any rights required for the continued effective operation
of the international registry in the event of a change of Registrar will vest in
or be assignable to the new Registrar;
(d)after consultation with the Contracting States, make or approve and
ensure the publication of regulations pursuant to the Protocol dealing with
the operation of the international registry;
(e)establish administrative procedures through which complaints
concerning the operation of the international registry can be m ade to the
Supervisory Authority;
(f)supervise the Registrar and the operation of the international
registry;
(g)at the request of the Registrar, provide such guidance to the
Registrar as the supervisory authority thinks fit;
(h)set and periodically review the structure of fees to be charged for
the services and facilities of the international registry;
13
(i)do all things necessary to ensure that an efficient notice -based
electronic registration system exists to implement the objectives of this
Convention and the Protocol; and
(j)report periodically to Contracting States concerning the discharge
of its obligations under this Convention and the Protocol.
SECTION Section 76

Untitled Section

3.The supervisory authority may enter into any agreement requisite for the
performance of its functions, including any agreement referred to in Article 27(3).
SECTION Section 77

Untitled Section

4.The supervisory authority shall own all proprietary rights in the databases
and archives of the International Registry.
SECTION Section 78

Untitled Section

5.The Registrar shall ensure the efficient operation of the international
registry and perform the functions assigned to it by this Convention, the Protocol
and the regulations.
SECTION Section 79

Untitled Section

CHAPTER V
OTHER MATTERS RELATING TO REGISTRATION
SECTION Section 8

Untitled Section

5.(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.
5
10
15
20
25
30
35
40
16 of 2024.
3
16 of 2024.
5
10
15
20
25
30
35
40
SECTION Section 80

Untitled Section

Article 18
Registration requirements
SECTION Section 81

Untitled Section

1.The Protocol and regulations shall specify the requirements, including the
criteria for the identification of the object:
(a)for effecting a registration (which shall include provision for prior
electronic transmission of any consent from any person whose consent is
required under Article 20);
(b)for making searches and issuing search certificates, and, subject
thereto;
(c)for ensuring the confidentiality of information and documents of
the International Registry other than information and documents relating to
a registration.
SECTION Section 82

Untitled Section

2.The Registrar sh all not be under a duty to enquire whether a consent to
registration under Article 20 has in fact been given or is valid.
SECTION Section 83

Untitled Section

3.Where an interest registered as a prospective international interest
becomes an international interest, no further registration sha ll be required
provided that the registration information is sufficient for a registration of an
international interest.
SECTION Section 84

Untitled Section

4.The Registrar shall arrange for registrations to be entered into the
International Registry database and made searchable in chronolo gical order of
receipt, and the file shall record the date and time of receipt.
SECTION Section 85

Untitled Section

5.The Protocol may provide that a Contracting State may designate an entity
or entities in its territory as the entry point or entry points through which the
information requi red for registration shall or may be transmitted to the
International Registry. A Contracting State making such a designation may
specify the requirements, if any, to be satisfied before such information is
transmitted to the International Registry.
SECTION Section 86

Untitled Section

Article 19
Validity and time of registration
SECTION Section 87

Untitled Section

1.A registration shall be valid only if made in conformity with Article 20.
SECTION Section 88

Untitled Section

2.A registration, if valid, shall be complete upon entry of the required
information into the International Registry database so as to be searchable.
14
3.A registration shall be searchable for the purposes of the preceding
paragraph at the time when:
(a)the International Registry has assigned to it a sequentially ordered
file number; and
(b)the registration information, including the file number, is stored in
durable form and may be accessed at the International Registry.
SECTION Section 89

Untitled Section

4.If an interest first registered as a prospective international interest
becomes an international interest, that international interest shall be treated as
registered from the time of registration of the prospective international interest
provided that the registration was stil l current immediately before the
international interest was constituted as provided by Article 7.
SECTION Section 9

Untitled Section

6.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
(c)the debtor and creditor have not by written agreement excluded the
application of this section.
SECTION Section 90

Untitled Section

5.The preceding paragraph applies with necessary modifications to the
registration of a prospective assignment of an international interest.
SECTION Section 91

Untitled Section

6.A registration shall be searchable in the International Registry database
according to the criteria prescribed by the Protocol.
SECTION Section 92

Untitled Section

Article 20
Consent to registration
SECTION Section 93

Untitled Section

1.An international interest, a prospective international interest or an
assignment or prospect ive assignment of an international interest may be
registered, and any such registration amended or extended prior to its expiry, by
either party with the consent in writing of the other.
SECTION Section 94

Untitled Section

2.The subordination of an international interest to another interna tional
interest may be registered by or with the consent in writing at any time of the
person whose interest has been subordinated.
SECTION Section 95

Untitled Section

3.A registration may be discharged by or with the consent in writing of the
party in whose favour it was made.
SECTION Section 96

Untitled Section

4.The acqui sition of an international interest by legal or contractual
subrogation may be registered by the subrogee.
SECTION Section 97

Untitled Section

5.A registrable non -consensual right or interest may be registered by the
holder thereof.
SECTION Section 98

Untitled Section

6.A notice of a national interest may be registered by the holder thereof.
SECTION Section 99

Untitled Section

Article 21
Duration of registration
Registration of an international interest remains effective until discharged
or until expiry of the period specified in the registration.