INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
remedies include repossession and deregistration of aircraft assets. • Overriding effect: in case of any inconsistency between the Act and other laws, the provisions of the Act shall prevail. • Jurisdiction: High Courts are designated as the relevant courts for matters under the Convention. The enactment of this Act is expected to enhance legal certainty for aircraft financiers and lessors, reduce leasing costs for Indian carriers, and bolster India’s position in the global aviation market. 2.10.2 Declarations Made Concerning Conventions The Convention India has made extensive declarations under the Con - vention, as listed below. 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 holder of a registered international interest and shall have priority over a registered international interest, whether in or outside insolvency proceedings, namely: • 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 an aircraft object; • 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 default by that owner or operator under a contract to finance or lease that aircraft object; and • liens in favour of repairers of an aircraft object in their possession to the extent of service or ser - vices performed on and value added to that aircraft object.” 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 pro - vider of public services in India, to arrest or detain an aircraft object under its laws for payment of amounts
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.” 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: • 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; • 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 • rights of a person obtaining a court order permit - ting attachment of an aircraft object in partial or full satisfaction of a legal judgment.” General declaration under Article 52 “The Convention shall apply to all its territorial units.” 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.” 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 an application to the court may be exercised without court action and without leave of the court.” The Protocol India has made extensive declarations under the Pro - tocol, as follows.
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