Corporate affairs ministry exempts aviation from IBC’s moratorium clause

In a major relief to aircraft lessors, the Ministry of Corporate Affairs (MCA) on Wednesday exempted all transactions and agreements related to aircraft and their engines from moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC).

The MCA’s notification will allow lessors to promptly take their planes back from airlines. Aircraft lessors have been unhappy for the past few months after the National Company Law Tribunal (NCLT) in May barred them from repossessing their planes from Go First. Go First stopped operating flights on May 3 after filing an insolvency application with the tribunal.