Section 2 of The Protection of Interests in Aircraft Objects Act 2025 Definitions

Section 2 of The Protection of Interests in Aircraft Objects Act 2025 Definitions

Original Section Text

2. Definitions.—(1) In this Act, unless the context otherwise requires,—
(a) “agreement” shall have the meaning assigned to it in Article 1(a) of the Convention;
(b) “aircraft” shall have the meaning assigned to it in Article I (2)(a) of the Protocol;
(c) “aircraft objects” shall have the meaning assigned to it in Article I (2)(c) of the Protocol;
(d) “Article” means an Article of the Convention or the Protocol;
(e) “Convention” means the Convention on International Interests in Mobile Equipment signed at Cape Town on 16th November, 2001, as set out in the First Schedule to this Act;
(f) “creditor” shall have the meaning assigned to it in Article 1(i) of the Convention;
(g) “debtor” shall have the meaning assigned to it in Article 1(j) of the Convention;
(h) “declaration” means a declaration made by India under the Convention or the Protocol, as set out in the Second Schedule to this Act;
(i) “declared default” means the date on which the registry authority is notified by the creditor of the occurrence of default;
(j) “international interest” shall have the meaning assigned to it in Article 1(o) of the Convention;
(k) “prescribed” means prescribed by rules made under this Act;
(l) “Protocol” means the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Aircraft Equipment signed at Cape Town on 16th November, 2001, as set out in the Third Schedule to this Act;
(m) “registry authority” means the Directorate General of Civil Aviation constituted under section 3 of the Bharatiya Vayuyan Adhiniyam, 2024 (16 of 2024).
(2) The words and expressions used and not defined in this Act, but defined in the Convention or the Protocol or the regulations made thereunder, shall have the meanings respectively assigned to them in the Convention, Protocol or regulations made thereunder.

Visual Summary

Key Terms Defined

This section acts as the official dictionary for the entire Act, explaining crucial terms.

External Sources

Many definitions are directly imported from two international treaties: the Convention and the Protocol.

Registry Authority

Identifies the Directorate General of Civil Aviation (DGCA) as the official authority for registration.

Catch-All Clause

If a term isn’t defined here, its meaning is automatically taken from the Convention or Protocol.

Executive Summary

This section serves as the official dictionary for the Act. It provides clear definitions for key terms to ensure everyone involved—airlines, lenders, and authorities—is on the same page. Crucially, it states that many terms like ‘aircraft object’, ‘creditor’, and ‘debtor’ get their meaning from two international treaties: the Cape Town Convention and its Aircraft Protocol. This ensures India’s law aligns with global standards. The section also explicitly names the Directorate General of Civil Aviation (DGCA) as the ‘registry authority’ responsible for implementing these rules.

In-Depth Analysis of the Section

Introduction
Every law needs a definitions section to prevent confusion and ensure consistency. Section 2 is the foundation for understanding the entire Protection of Interests in Aircraft Objects Act. It acts as a glossary, defining the specific language used throughout the legislation. Its main purpose is to link the Indian Act directly to the international framework it is based on.

Breakdown of Key Definitions
The section can be understood by looking at its two main parts:

  • Sub-section (1): The List of Definitions. This part provides a list of important terms. Instead of creating new definitions, it mostly points to existing ones in other documents. For example:
    • ‘Convention’ and ‘Protocol’: These are the two key international treaties signed in Cape Town that this Act brings into Indian law. They are so important that their full texts are included as Schedules to the Act.
    • ‘Aircraft objects’, ‘creditor’, ‘debtor’: These core terms are defined by referring back to the Convention and Protocol. This ensures that an Indian airline (a ‘debtor’) and an international leasing company (a ‘creditor’) are using the exact same legal language.
    • ‘Registry authority’: This is one of the few terms defined directly. It clearly states that the Directorate General of Civil Aviation (DGCA) is the official body in India responsible for recording the financial interests in aircraft objects.
  • Sub-section (2): The Safety Net. This is a catch-all rule. It says that if any other word or phrase used in the Act isn’t defined in sub-section (1), one must look to the Convention or Protocol for its meaning. This prevents loopholes and reinforces the Act’s alignment with international standards.

Practical Example
Imagine a small Indian airline wants to lease a new Airbus A320 from a financing company based in Ireland. Under this Act:
– The lease document is the ‘agreement’.
– The airline is the ‘debtor’.
– The Irish company is the ‘creditor’.
– The Airbus A320 is an ‘aircraft object’.
The Irish company registers its financial interest (an ‘international interest’) with the ‘registry authority’, which is the DGCA in India. If the airline defaults on its lease payments, Section 2 ensures that the terms used by the Irish company, the Indian airline, and the Indian courts all have the same, internationally understood meaning.

Conclusion
Section 2 is more than just a list of words; it’s the bridge that connects Indian domestic law to the global aviation finance system. By standardizing the language and pointing to the Cape Town Convention and Protocol, it creates a predictable and reliable legal environment, making it easier and safer for international companies to finance and lease aircraft to Indian operators.

Related Provisions

Understanding the definitions in Section 2 is essential for interpreting other key parts of the Act. The following sections are directly connected:

Learning Aids

Mnemonics
  • To remember the source of definitions: ‘When in doubt, the Treaties talk.’ This reminds you that if the Act is silent, the Convention and Protocol provide the answer.
  • To remember the key defined entities: ‘A-C-D-R’. Agreement, Creditor, Debtor, Registry Authority. These are the core players and concepts defined.
Process Flowchart
Need to understand aterm in the Act?Is it in Section 2(1)?Use the definitionprovided in the Act.Use definition from theConvention or Protocol.YesNo

Frequently Asked Questions

What are the ‘Convention’ and ‘Protocol’ mentioned so often?

They are two major international agreements, formally known as the Cape Town Convention and its Aircraft Protocol. India has agreed to follow them, and this Act is the primary law that puts their rules into effect within India for aircraft financing and leasing.

Who is the ‘registry authority’ in India?

The Act clearly states in Section 2(1)(m) that the ‘registry authority’ is the Directorate General of Civil Aviation (DGCA), which is India’s main aviation regulatory body. They are responsible for keeping records of financial interests in aircraft.

What happens if a word is used in the Act but not defined in Section 2?

Sub-section (2) provides the answer. If a term is not defined in this section, you must use the definition provided in the Convention or the Protocol. This ensures that the Indian law remains consistent with the international standards.

Test Your Knowledge

Quiz: According to this section, what does ‘Convention’ refer to?

A) The Indian Aviation Convention

B) The Convention on International Interests in Mobile Equipment

C) The Geneva Convention

Show Answer

Correct Answer: B) Clause (e) of sub-section (1) explicitly defines the ‘Convention’ as the Convention on International Interests in Mobile Equipment signed at Cape Town.

Quiz: Who is designated as the ‘registry authority’ for this Act?

A) The Ministry of Finance

B) The Airports Authority of India

C) The Directorate General of Civil Aviation (DGCA)

Show Answer

Correct Answer: C) Clause (m) of sub-section (1) clearly states that the ‘registry authority’ is the Directorate General of Civil Aviation.

More Quiz

Quiz: Where should you look for the definition of a term if it’s NOT defined in this Act?

A) The Indian Contract Act

B) The Convention or the Protocol

C) A standard English dictionary

Show Answer

Correct Answer: B) Sub-section (2) directs that any words and expressions not defined in the Act shall have the meanings assigned to them in the Convention or the Protocol.

Quiz: The term ‘aircraft objects’ as defined by reference in this section includes which of the following?

A) Only fully assembled aircraft

B) Airport runways and terminals

C) Airframes, aircraft engines, and helicopters

Show Answer

Correct Answer: C) Clause (c) points to the Protocol’s definition of ‘aircraft objects’, which specifically includes airframes, aircraft engines, and helicopters.