INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
2.5.5 Assignment of Insurance/Reinsurance Assignments of insurance and reinsurance are rou - tinely carried out in aircraft transactions in India. 2.6 Lease Enforcement 2.6.1 Restrictions on Lessors’ Abilities A foreign lessor may terminate an aircraft lease if the lessee defaults on their obligations under the lease. As long as the foreign lessor is acting within the terms of the lease, there are no restrictions on their ability to terminate. A foreign lessor would be required to obtain permission from the customs authorities to re-export the aircraft from India. The sale of the aircraft following such termination is permissible. 2.6.2 Lessor Taking Possession of the Aircraft There is no procedure for exercising self-help rem - edies under local laws in India. Peaceful reposses - sion of the aircraft can, of course, be obtained without judicial intervention. Legally, the lessor may terminate the agreement and take possession or control of the aircraft. In cases where there is no co-operation, the lessor has the option to approach the court. 2.6.3 Specific Courts for Aviation Disputes There are no specific courts that are explicitly compe - tent to decide aviation disputes; the value, facts and circumstances of the aviation dispute would determine the forum. However, under Section 8 of the Protection of Interests in Aircraft Objects Act, 2025 (the “Aircraft Objects Act”), the High Court having the relevant ter - ritorial jurisdiction has been conferred authority as the relevant court for purposes of disputes arising from Article 53 of the Convention. 2.6.4 Summary Judgment or Other Relief The Code of Civil Procedure, 1908 (CPC) provides for summary procedures under Order XXXVII. Summary procedures may only be effective in cases where a foreign lessor seeks to recover unpaid rent and other monies under the lease and not to enforce the lease. The courts of law are ready to intervene upon proper proceedings being filed. Interim measures such as the grounding of the aircraft can be obtained fairly quickly, usually within a week or two of the initiation of the legal action. Where there is
an arbitration clause, the court and the arbitral tribunal have the power to pass an interim protection order. In India, as elsewhere, the granting of an injunc - tion under the CPC is a discretionary remedy, which may be granted unconditionally or upon the court’s imposed terms. In exercising its jurisdiction, the court will not enter into a pre-trial assessment of the les - sor’s claim. If the court is satisfied that the lessor has a prima facie case against the lessee and that, in the absence of an injunction, “irreparable injury” or loss that cannot be compensated in the form of damages is likely to be caused to the lessor, it will grant the injunction. Before granting an injunction, the court will direct that notice of it be given to the lessee, except in cases where it appears that the object of granting the injunction would be defeated by such delay as would result from this. 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments India would recognise a lease governed by foreign law and will enforce its terms and sustain claims aris - ing under it as long as the rights are not in breach of Indian law or public policy. Submission to a foreign jurisdiction would also be recognised. 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards Reciprocating Territories A foreign decree can only be executed in India directly as if it had been passed by a court in India in certain cases. Section 44A of the CPC provides, inter alia, that where a foreign judgment has been rendered by a superior court in any country or territory outside India that the government has by a notification declared to be a reciprocating territory, it may be enforced in India by proceedings in execution as if the relevant court of India had rendered the judgment. Conditions for Enforceability of Foreign Judgments Courts in India may refuse execution if the decree falls within any of the following exceptions specified in Section 13 of the CPC, which, inter alia, provides that a foreign judgment shall be conclusive of any matter directly adjudicated upon, except where:
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