In a major development, the Ministry of Corporate Affairs has published amendments to the Insolvency and Bankruptcy Code (IBC) 2016 that will allow aircraft lessors to be able to repossess their aircraft. However this will not be applicable in the ongoing Go First insolvency case.
As per the notification, the central government has notified that the provisions of sub-section (1) of section 14 of the IBC, 2016 (Section 31 of IBC 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines.
Through this new amendment, going forward aircraft lessors will be able to repossess their aircraft.