THE GO FIRST INSOLVENCY AND THE CAPE TOWN CONVENTION: HAS INDIA FINALLY RESOLVED THE LESSORS' REPOSSESSION NIGHTMARE?

The voluntary insolvency of Go First (India) Ltd. in May 2023, again illustrated the ongoing struggle between India’s insolvency moratorium policy and aircraft lessor rights. This struggle was the result of the National Company Law Tribunal (NCLT) accepting Go First’s petition and instituting a moratorium. A multitude of aircraft lessors were suddenly denied the right to retrieve their aircraft, despite their rights being contractually and legally clear. The crisis brought forth two major developments. One the Ministry of Corporate Affairs’ Gazette Notification in October 2023, which created an exemption for the Cape Town Convention aircraft transactions from the IBC moratorium, and the other was the Delhi High Court’s April 2024 groundbreaking ruling, which compelled the DGCA to effect aircraft deregistration. The Indian Parliament enacted the Protection of Interests in Aircraft Objects Act, 2025, which created a permanent statutory solution. This paper reviews the moratorium crisis, and provides an assessment on whether the situation truly has improved, and what the remaining issues are regarding the 2025 Act