Aviation Ministry, MCA take different flight paths on IBC moratorium

The civil aviation ministry has asked the corporate affairs ministry for exemption from the asset moratorium rule for leased aircraft during the insolvency resolution of an airline, persons aware of the details said.

Under the Insolvency and Bankruptcy Code (IBC), once resolution proceedings are initiated, the transfer or disposal of assets of the stressed firm is effectively barred through a moratorium. The issue has come to the fore after Wadia-owned Go First declared voluntary bankruptcy in May.