This blog examines the legal and practical challenges arising
from the disconnect between India's Insolvency and Bankruptcy
Code (IBC) and its commitments under the Cape Town Convention. By
exploring the impact on aircraft lessors and the broader aviation
sector, it highlights the urgent need for legislative clarity and
harmonization to restore confidence in India's aviation leasing
landscape.
I. INTRODUCTION:
In the past decade, airline companies, particularly in India,
have been hitting the headlines for their declaration of
insolvency. The latest addition is the Go-First airline, which on 3
May 2023 filed an insolvency petition in the National Company Law
Tribunal ('NCLT'). The matter of fact isn't only the
recurring declarations of insolvency by Indian airlines, which
subsequently adversely affect India's reputation in the global
market, but also the plight of the lessors of the aircraft (in this
case, GoFirst).
