The Impact of Cape Town Convention on Aviation Insolvency

  • Gaurav Mitra and Lavanya Pathak
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  • Gaurav Mitra

    Advocate at Bar Council of Delhi, India

  • Lavanya Pathak

    Advocate at Bar Council of Delhi, India

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This paper undertakes a comprehensive exploration of the implications of the Cape Town Convention on aviation insolvency, focusing specifically on its ramifications within the Indian legal landscape. Beginning with a thorough review of existing literature, it synthesizes the scholarly discourse surrounding the intersection of aviation law and insolvency frameworks. Drawing from this foundation, the paper proceeds to elucidate the current insolvency regime prevailing in India, examining its adequacy, limitations, and relevance to the aviation sector. Within this context, the analysis navigates through the intricacies of the Cape Town Convention, shedding light on its provisions and potential impact on aviation insolvency proceedings. One of the central themes explored in this paper is the dearth of dedicated legislation addressing the unique challenges faced by the aviation industry in India. The discussion underscores the critical need for a comprehensive legal framework tailored to the specific requirements of aircraft financing, registration, asset preservation, and the treatment of claims in the event of airline insolvencies. In addition, the paper meticulously analyzes various issues pertinent to airline insolvencies in India, including legal requirements for maintaining the company as a going concern and the cross-border implications of insolvency proceedings. Through this examination, it identifies key challenges and obstacles faced by stakeholders, offering pragmatic insights for mitigation. In its concluding remarks, the paper advocates for the integration of the Cape Town Convention into the Indian legal framework governing insolvency. By highlighting the potential benefits of such integration and proposing actionable steps for its incorporation into the Insolvency and Bankruptcy Code, the paper outlines a pathway towards enhancing the resilience and efficiency of the Indian aviation sector in the face of insolvency challenges.


Research Paper


International Journal of Legal Science and Innovation, Volume 5, Issue 5, Page 88 - 100


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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (, which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.


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