{"id":304331,"date":"2023-10-11T10:30:08","date_gmt":"2023-10-11T05:00:08","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=304331"},"modified":"2023-10-11T10:00:24","modified_gmt":"2023-10-11T04:30:24","slug":"mca-notifies-section-14-of-ibc-will-not-apply-to-transactions-agreements-arrangements-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2023\/10\/11\/mca-notifies-section-14-of-ibc-will-not-apply-to-transactions-agreements-arrangements-legal-news\/","title":{"rendered":"Section 14 of IBC, 2016 will not apply to Transactions, Arrangements or Agreements"},"content":{"rendered":"
\n

On 3-10-2023, the Ministry of Corporate Affairs notified that the provisions of Section 14 (1), relating to “Moratorium”, of the Insolvency and Bankruptcy Code, 2016<\/a> will not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters.<\/p>\n

Key Points:<\/p>\n

    \n
  1. \n

    On 16-11-2001, in a Convention on International Interests in Mobile Equipment specific to Aircraft Equipment was adopted under the guidance of International Civil Aviation Organization and the International Institute for the Unification of Private Law, which was concluded at Cape Town.<\/p>\n<\/li>\n

  2. \n

    On 31-3-2008, India, being a signatory, acceded to the Convention and the Protocol by depositing with the International Institute for the Unification of Private Law the instruments of accession.<\/p>\n<\/li>\n<\/ol>\n

    Note:<\/span> “14. Moratorium<\/a><\/span>.—(1) Subject to provisions of sub-sections (2) and (3), on the insolvency commencement date, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely—<\/span><\/p>\n

    (a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority;<\/p>\n

    (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;<\/p>\n

    (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002<\/a> (54 of 2002);<\/p>\n

    (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.<\/p>\n

    Explanation.—For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concession, clearances or a similar grant or right during the moratorium period.”<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    On 3-10-2023, the Ministry of Corporate Affairs notified that the provisions of Section 14 (1), relating to “Moratorium”, of the Insolvency and <\/p>\n","protected":false},"author":67515,"featured_media":293777,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,1193],"tags":[2998,52817,56184,53360,61797,34729,43290],"class_list":["post-304331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-notifications","tag-Agreement","tag-aircraft-equipment","tag-arrangements","tag-convention","tag-international-interests-in-mobile-equipment","tag-mca","tag-transactions"],"yoast_head":"\nMCA Exempts Aircraft from Section 14 IBC | SCC Blog<\/title>\n<meta name=\"description\" content=\"Ministry of Corporate Affairs notified that provisions of Section 14(1) of Insolvency and Bankruptcy 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