The Centre has excluded transactions involving aircraft, plane engines, airframes and helicopters from the Insolvency and Bankruptcy (IBC) code.

The Ministry of Corporate Affairs issued a notification stating that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC), would not be applicable to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters.

“…the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), shall not apply to transactions, arrangements or agreements, under the Convention and the Protocol, relating to aircraft, aircraft engines, airframes and helicopters,” the notification read.

Section 14 of the IBC deals with the power of adjudicating authority (NCLT) to issue a moratorium when admitting a company to insolvency resolution process.

If implemented retrospectively, the move may impact Go First’s insolvency resolution proceedings.