Uncovering The Complexities: Cape Town Convention And Aircraft Insolvency In India

Shubham Sharma, Campus Law Centre, University of Delhi, New Delhi

ABSTRACT

Despite ratifying the Convention on International Interests in Mobile Equipment (CTC) and its Aircraft Protocol in 2008, this essay explores the difficulties India faces in putting them into practice. When a debtor becomes insolvent, the CTC aims to safeguard the interests of secured creditors, lessors, and conditional sellers of aircraft objects, which will lower borrowing costs and increase industry stability. The essay examines a current instance of Go First Airlines' insolvency and its legal disputes with Pratt & Whitney (P&W) regarding engine flaws and repossession rights. It examines the differences between the CTC and India's Insolvency and Bankruptcy Code (IBC), as well as the challenges involved in applying the CTC's Alternative A provisions to aircraft objects. The conclusion emphasizes the importance of striking a balance between the two legal frameworks and highlights the value of taking into account international law and the economic environment when resolving insolvency cases in India.