INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
can fluently understand. Advance recordation of the deregistration power of attorney with the DGCA is not required but is recommended. 2.8.8 Documents Required to Enforce Deregistration Power of Attorney The person exercising powers under the deregistra - tion power of attorney would need to demonstrate that they are duly authorised by the attorney (in the case of a corporate entity) to sign and act on behalf of such an attorney. A board resolution or officers cer - tificate issued by the attorney would usually suffice. 2.8.9 Choice of Laws Governing Deregistration Power of Attorney It is recommended that deregistration powers of attor - ney be governed by Indian law. 2.8.10 Revocation of a Deregistration Power of Attorney Usually, if a deregistration power of attorney is stat - ed to be irrevocable, the grantor would not be able to revoke it. However, in practice, the grantor could always dispute a power of attorney on the grounds of Under India’s regulations, an IDERA holder or its cer - tified designee can deregister and export an aircraft from India without the lessee’s consent. If the mortga - gee of an aircraft is the IDERA holder or the certified designee, it may also export the aircraft without the owner’s or lessor’s consent. The asset does not need to be located in India at the time of deregistration. 2.8.12 Aircraft Export Permits/Licences The following permissions are required for the export of an aircraft from India: • permission from the DGCA under AIC 12 of 2018 (after the IDERA holder pays government dues accrued against the aircraft for three months prior to the date of application for deregistration); and • permission from the customs and tax authorities and from the Reserve Bank of India. fraud, coercion or misrepresentation. 2.8.11 Owner’s/Lessor’s Consent
These permissions cannot be issued in advance, and the time required to grant each licence may range from two to three weeks. 2.8.13 Costs, Fees and Taxes Concerning Export of Aircraft No taxes are payable in respect of the export of an aircraft from India; costs and fees may vary on a case- by-case basis. 2.8.14 Practical Issues Related to Deregistration of Aircraft The DGCA usually requests proof of deactivation of the Mode S code from the aircraft. All original docu - mentation (request letters, etc) should be notarised, and adequate proof should be included to demon - strate that the signatory of original documents sub - mitted to the DGCA is duly authorised to do so by their company/employer. In another recent matter, the DGCA refused to deregister aircraft within five working days from the date of receipt of the application from the IDERA holder and requested various documen - tation instead. Adequate responses had to be filed and paperwork provided to overcome the objections raised by the DGCA. 2.9 Insolvency Proceedings 2.9.1 Overview of Relevant Laws and Statutory Regimes Governing Restructurings, Reorganisations, Insolvencies and Liquidations The current statutory regime for the reorganisation and insolvency resolution of a corporate entity is governed by the Insolvency and Bankruptcy Code, 2016 (the “Code”), some provisions of which came into force in November 2016. The Code brings the insolvency laws in India under a single umbrella with an objective to, inter alia, maximise the valuation of the corporate debtor’s assets through corporate restructuring or liq - uidation in a time-bound manner. 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership The Corporate Insolvency Resolution Process (CIRP) can be initiated upon the occurrence of default of a minimum of INR10 million by a financial or operative creditor, or at the instance of the corporate entity itself.
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