Centre exempts aircraft from moratorium protection of IBC

In a big respite for aircraft lessors, the government issued a notification giving exemption to aircraft and aircraft engines from the mandatory moratorium placed over assets during a bankruptcy process, under the Insolvency and Bankruptcy Code, 2016.

The government’s action comes after the National Company Law Tribunal ruling in Go First’s case which put a moratorium on lessors to repossess aircraft. However, government officials told ET that the notification will not impact the Go First case, as it cannot be applied retrospectively.