INDIA Law and Practice Contributed by: Nitin Sarin and Vistasp Irani, Sarin & Co
Declaration under Article XXX(1) in respect of Article VIII India will apply Article VIII. Declaration under Article XXX(2) in respect of Article X providing for the application of the entirety of Article X India will apply Article X of the Protocol in its entirety, and the number of working days to be used for the purposes of the time limit laid down in Article X(2) of the Protocol shall be equal to no more than: • ten working days in respect of the remedies speci - fied in Article 13 (1)(a), (b) and (c) of the Conven - tion (respectively, preservation of aircraft objects and their value; possession, control or custody of aircraft objects; and immobilisation of aircraft objects); and • 30 working days in respect of the remedies speci - fied in Article 13 (1)(d) and (e) of the Convention (respectively, lease or management of aircraft objects and the income thereof; and sale and application of proceeds from aircraft objects). General declaration under Article XXX(3) in respect of Article XI providing for the application of Alternative A in its entirety to all types of insolvency proceedings India will apply Article XI, Alternative A, of the Protocol in its entirety to all types of insolvency proceedings, and the waiting period for the purposes of Article XI(3) of that Alternative shall be two calendar months. Declaration under Article XXX(1) in respect of Articles XII and XIII India will apply Articles XII and XIII. 2.10.3 Application of Article XIII of the Protocol on Matters Specific to Aircraft Equipment Article XIII of the Protocol applies domestically. For the DGCA to record an IDERA in relation to an air - craft, an IDERA holder, their authorised signatory or a certified designee of the authorised signatory shall submit an application as per Appendix B of CAR Sec - tion 2, Airworthiness Series F Part I Issue II. Along with the application, the applicant must submit an original IDERA or two notarised copies thereof.
2.10.4 Enforcement of Conventions Indian courts have had limited opportunities to deal with issues pertaining to the enforcement of the Convention and the Protocol. By way of recent judg - ments, in ACG Aircraft Leasing Ireland Limited v Union of India and Others, on 26 April 2024 the Delhi High Court recognised the mandatory nature of Rule 30 (7) of the Aircraft Rules, 1937 and upheld the duty cast upon the DGCA to cancel the certificate of registra - tion. All the case law to date deals extensively with India’s international obligations under the Convention/ Protocol and with deregistration; however, no court has dealt directly with the issue of the physical export of an aircraft from India under the Convention and the Protocol. 2.10.5 Other Conventions India has ratified neither the 1948 Geneva Convention on the International Recognition of Rights in Aircraft nor the 1933 Rome Convention on the Unification of Certain Rules relating to the Precautionary Arrest of Aircraft. 3. Aircraft Debt Finance 3.1 Structuring 3.1.1 Restrictions on Lending and Borrowing There are very strict regulations and restrictions on loans from foreign lenders, especially in foreign exchange. The RBI is the relevant regulator, and must issue prior approval before any borrowings can be made. 3.1.2 Effect of Exchange Controls or Government Consents India is an exchange-controlled country. The relevant enactment is the Foreign Exchange Management Act of 1999 and the rules and regulations made thereun - der, which are administered by the RBI. Any financing or repatriation of the realisation of proceeds under a loan, guarantee or security document would require the approval of the RBI. 3.1.3 Granting of Security to Foreign Lenders Guarantees, especially for foreign exchange-denom - inated transactions, are regulated by the RBI’s For - eign Exchange Management (Guarantees) Regula -
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