Govt may clarify prospective clause of IBC exemption for aviation

The High Court has asked the government for its response to a plea by a Gofirst lessor

The Ministry of Corporate Affairs (MCA) is likely to clarify to the Delhi High Court that the recent amendment to Insolvency and Bankruptcy Code (IBC) regulations, which exempts aircraft, engines, and related assets from the moratorium clause, is intended to be prospective and apply to future insolvencies, according to official sources.

The high court had sought the government’s response to a plea by a Go First lessor.

On October 3, the MCA provided a major relief to aircraft lessors by exempting all transactions and agreements relating to aircraft, aircraft engines, airframes, and helicopters from the moratorium under Section 14 of