The Geneva Convention, 1948 - Directorate General of Civil Aviation

111CHAPTER XIVCONVENTION ON THE INTERNATIONALRECOGNITION OF RIGHTS IN AIRCRAFTSIGNED AT GENEVA ON 19TH JUNE, 1948(THE GENEVA CONVENTION, 1948)

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113THE GENEVA CONVENTION, 1948CHAP. XIVCHAPTER XIVCONVENTION ON THE INTERNATIONALRECOGNITION OF RIGHTS IN AIRCRAFTSIGNED AT GENEVA ON 19TH JUNE, 1948 *(THE GENEVA CONVENTION, 1948)Whereas the International Civil AviationConference, held at Chicago in November-December 1944, recommended the earlyadoption of a Convention dealing with thetransfer of title to aircraft.Whereas it is highly desirable in the interestof the future expansion of International CivilAviation that rights in aircraft be recognisedinternationally.The undersigned, duly authorized, HaveAgreed, on behalf of their respectiveGovernments, As follows :Article I1. The Contracting States undertake torecognise :(a) rights of property in aircraft;(b) rights to acquire aircraft by purchasecoupled with possession of the aircraft;(c) rights to possession of aircraft underleases of six months or more;(d) mortgages, hypotheques and similarrights in aircraft which are contractuallycreated as security for payment of anindebtedness:Provided that such rights(i) have been constituted in accordancewith the law of the Contracting State inwhich the aircraft was registered as tonationality at the time of theirconstitution, and(ii) are regularly recorded in a public recordof the Contracting State in which theaircraft is registered as to nationality.The regularity of successive recordings indifferent Contracting States shall be determinedin accordance with the law of the State wherethe aircraft was registered as to nationality atthe time of each recording.2. Nothing in this Convention shall preventthe recognition of any rights in aircraft underthe law of any Contracting State; butContracting States shall not admit or recogniseany right as taking priority over the rightsmentioned in paragraph (1) of this Article.Article II1. All recording relating to a given aircraftmust appear in the same record.2. Except as otherwise provided in thisConvention, the effects of the recording of anyright mentioned in Article I, paragraph (1)with regard to third parties shall be determinedaccording to the law of the Contracting Statewhere it is recorded.3. A Contracting State may prohibit therecording of any right which cannot validly beconstituted according to its national law.* Entered into force.on 17 September, 1953.As on 30 June, 2003 there are only 87 contracting States party to it.India has not ratified it.

Article III1. The address of the authority responsiblefor maintaining the record must be shown onevery aircraft’s certificate of registration as tonationality.2. Any person shall be entitled to receivefrom the authority duly certified copies orextracts of the particulars recorded. Such copiesor extracts shall constitute prima facie evidenceof the contents of the record.3. If the law of a Contracting State providesthat the filling of a document for recordingshall have the same effect as the recording, itshall have same effect for the purposes of thisConvention. In that case adequate provisionshall be made to ensue that such document isopen to the public.4. Reasonable charges may be made forservices performed by the authority maintainingthe record.Article IV1. In the event that any claims in respectof:(a) compensation due for salvage of theaircraft, or(b) extraordinary expensesindispensable for the preservationof the aircraft give rise, under thelaw of the Contracting State wherethe operations of salvage orpreservation were terminated, to aright conferring a charge againstthe aircraft, such right shall berecognised by Contracting Statesand shall take priority over all otherrights in the aircraft.2. The rights enumerated in paragraph (1)shall be satisfied in the inverse order of thedates of the incidents in connexion with whichthey have arisen.3. Any of the said rights may, within threemonths from the date of the termination of thesalvage or preservation operations, be notedon the record.114CHAP. XIV THE GENEVA CONVENTION, 19484. The said rights shall not be recognisedin other Contracting States after expiration ofthe three months mentioned in paragraph (3)unless, within this period;(a) the right has been noted on the recordin conformity with paragraph (3), and(b) the amount has been agreed upon orjudicial action on the right has beencommenced. As far as judicial action isconcerned, the law of the forum shalldetermine the contingencies upon whichthe three months period may beinterrupted or suspended.5. This article shall apply notwithstandingthe provisions of Article I, paragraph (2).Article VThe priority of a right mentioned in Article1, paragraph (1) (d), extends to all sums therebysecured. However, the amount of interestincluded shall not exceed that accrued duringthe three years prior to the executionproceedings together with that accrued duringthe execution proceedings.Article VIIn case of attachment or sale of an aircraftin execution, or of any right therein, theContracting States shall not be obliged torecognise, as against the attaching or executingcreditor or against the purchaser, any rightmentioned in Article I, paragraph (1), or thetransfer of any such right, if constituted oreffected with knowledge of the sale or executionproceedings by the person against whom theproceedings are directed.Article VII1. The proceedings of a sale of an aircraftin execution shall be determined by the law ofthe Contracting State where the sale takes place.2. The following provisions shall howeverbe observed:(a) The date and place of the sale shall befixed at least six weeks in advance.

115THE GENEVA CONVENTION, 1948CHAP. XIV(b) The executing creditor shall supply tothe Court or other competent authoritya certified extract of the recordingsconcerning the aircraft. He shall givepublic notice of the sale at the placewhere the aircraft is registered as tonationality, in accordance with the lawthere applicable, at least one monthbefore, the day fixed, and shallconcurrently notify by registered letter,if possible by air mail, the recordedowner and the holders of recorded rightsin the aircraft and of rights noted on therecord under Article IV, paragraph (3),according to their addresses as shownon the record.3. The consequences of failure to observethe requirements of paragraph (2) shall be asprovided by the law of the Contracting Statewhere the sale takes place. However, any saletaking place in contravention of therequirements of that paragraph may be annulledupon demand made, within six months fromthe date of the sale by any person sufferingdamage as the result of such contravention.4. No sale in execution can be effectedunless all rights having priority over the claimof the executing creditor in accordance withthis Convention which are established beforethe competent authority, are covered by theproceeds of sale or assumed by the purchaser.5. When injury or damage is caused topersons or property on the surface of theContracting State where the execution saletakes place by any aircraft subject to any rightreferred to in Article I held as security for anindebtedness, unless adequate and effectiveinsurance by a State or an insurance undertakingin any State has been provided by or on behalfof the operator to cover such injury or damage,the national law of such Contracting State mayprovide in case of the seizure of such aircraftor any other aircraft owned by the same personand encumbered with any similar right held bythe same creditor :(a) that the provisions of paragraph (4)above shall have no effects with regardto the person suffering such injury ordamage or his representative if he is anexecuting creditor;(b) that any right referred to in Article Iheld as security for an indebtednessencumbering the aircraft may not be setup against any person suffering suchinjury or damage or his representativein excess of an amount equal to 80% ofthe sale price.In the absence of other limit established bythe law of the Contracting State where theexecution sale takes place, the insurance shallbe considered adequate within the meaning ofthe present paragraph if the amount of theinsurance corresponds to the value when newof the aircraft seized in execution.6. Costs legally chargeable under the lawof the Contracting State where the sale takesplace, which are incurred in the commoninterest of creditors in the course of executionproceedings leading to sale, shall be paid outof the proceeds of sale before any claims,including those given preference by ArticleIV.Article VIIISale of an aircraft in execution in conformitywith the provisions of Article VII shall effectthe transfer of the property in such aircraft freefrom all rights which are not assumed by thepurchaser.Article IXExcept in the case of a sale in execution inconformity with the provisions of Article VII,no transfer of an aircraft from the nationalityregister or the record of a Contracting State tothat of another Contracting State shall be made,unless all holders of recorded rights have beensatisfied or consent to the transfer.

Article X1. If a recorded right in an aircraft of thenature specified in Article 1, and held as securityfor the payment of an indebtedness, extends,in conformity with the law of the ContractingState where the aircraft is registered, to spareparts stored in a specified place or places, suchright shall be recognised by all ContractingStates, as long as the spare parts remain in theplace or places specified, provided that anappropriate public notice, specifying thedescription of the right, the name and addressof the holder of this right, and the record inwhich such right is recorded is exhibited at theplace where the spare parts are located , so asto give due notification to third parties thatsuch spare parts are encumbered.2. A statement indicating the character andthe approximate number of such spare partsshall be annexed to or included in the recordeddocument. Such parts may be replaced bysimilar parts without affecting the right of thecreditor.3. The provisions of Article VII, paragraphs(1) and (4), and of Article VIII shall apply to asale of spare parts in execution. However, wherethe executing creditor is an unsecured creditor,paragraph 4 of Article VII in its application tosuch a sale shall be construed so as to permitthe sale to take place if a bid is received in anamount not less than two-third of the value ofthe spare parts as determined by expertsappointed by the authority responsible for thesale. Further, in the distribution of the proceedsof sale, the competent authority may, in orderto provide for the claim of the executingcreditor, limit the amount payable to holders ofprior rights to two- thirds of such proceeds ofsale after payment of the costs referred to inArticle VII, paragraph (6).4. For the purpose of this Article the term“spare parts” means parts of aircraft, engines,propellers radio apparatus instruments,appliances, furnishings, parts of any of theforegoing, and generally any other articles ofwhatever description maintained for installation116CHAP. XIV THE GENEVA CONVENTION, 1948in aircraft in substitution for parts articlesremoved.Article XI1. The provisions of this Convention shallin each Contracting State apply to all aircraftregistered as to nationality in anotherContracting State.2. Each Contracting State shall also applyto aircraft there registered as to nationality :(a) The provisions of Article II, III, IX and(b) The provisions of Article IV, unless thesalvage or preservation operations havebeen terminated within its own territory.Article XIINothing in this Convention shall prejudicethe right of any Contracting State to enforceagainst an aircraft its national laws relating toimmigration, customs or air navigation.Article XIIIThis Convention shall not apply to aircraftused in military, customs or police services.Article XIVFor the purpose of this Convention, thecompetent judicial and administrativeauthorities of the Contracting States may,subject to any contrary provision in theirnational law, correspond directly with eachother.Article XVThe Contracting States shall take suchmeasures as are necessary for the fulfilment ofthe provisions of this Convention and shallforthwith inform the Secretary General of theInternational Civil Aviation Organization ofthese measures.Article XVIFor the purposes of this Convention theterm “air-craft” shall include the airframe,engines, propellers, radio apparatus, and allother articles intended for use in the aircraft

whether installed therein or temporarilyseparated therefrom.Article XVIIIf a separate resister of aircraft for purposesof nationality is maintained in any territory forwhose foreign relations a Contracting State isresponsible, references in this Convention tothe law of the Contracting State shall beconstrued as references to the law of thatterritory.Article XVIIIThis Convention shall remain open forsignature until it comes into force in accordancewith the provisions of Article XX.Article XIX1. This Convention shall be subject toratification by the signatory States.2. The instruments of ratification shall bedeposited in the archives of the InternationalCivil Aviation Organization, which shall givenotice of the date of deposit to each of thesignatory and adhering States.Article XX1. As soon as two of the signatory Stateshave deposited their instruments of ratificationof this Convention, it shall come into forcebetween them on the ninetieth day after thedate of the deposit of the second instrument ofratification. It shall come into force, for eachState which deposit its instrument of ratificationafter that date on the ninetieth day after thedeposit of its instrument of ratification.2. The International Civil AviationOrganization shall give notice to each signatoryState of the date on which this Conventioncomes into force.3. As soon as this Convention comes intoforce it shall be registered with the UnitedNations by the Secretary General of theInternational Civil Aviation Organization.117THE GENEVA CONVENTION, 1948Article XXI1. This Convention shall, after it has comeinto force, be open for adherence by nonsignatoryStates.2. Adherence shall be effected by thedeposit of an instrument of adherence in thearchives of the International Civil AviationOrganization, which shall give notice of thedate of the deposit to each signatory andadhering State.3. Adherence shall take effect as from theninetieth day after the date of the deposit ofthe instrument of adherence in the archives ofthe International Civil Aviation Organization.Article XXII1. Any Contracting State may denouncethis Convention by notification of denunciationto the International Civil Aviation Organization,which shall give notice of the date of receipt ofsuch notification to each signatory and adheringState.2. Denunciation shall take effect sixmonths after the date of receipt by theInternational Civil Aviation Organization ofthe notification of denunciation.Article XXIIICHAP. XIV1. Any State may at the time of deposit ofits instrument of ratification of adherence,declare that its acceptance of this Conventiondoes not apply to any one or more of theterritories for the foreign relations of whichsuch State is responsible.2. The International Civil AviationOrganization shall give notice of any suchdeclaration to each signatory and adheringState.3. With the exception of territories inrespect of which a declaration has been madein accordance with paragraph (1) of this Article,this Convention shall apply to all territories forthe foreign relations of which a ContractingState is responsible.

118CHAP. XIV THE GENEVA CONVENTION, 19484. Any State may adhere to thisConvention separately on behalf of all or anyof the territories regarding which it has made adeclaration in accordance with paragraph (1)of this Article and the provisions of paragraphs(2) and (3) of Article XXI shall apply to suchadherence.5. Any Contracting State may denouncethis Convention, in accordance with theprovisions of Article XXII, separately for all orany of the territories for the foreign relationsof which such State is responsible.IN WITNESS WHEREOF the undersignedPlenipotentiaries, having been duly authorizedhave signed this Convention.DONE at Geneva, on the nineteenth day ofthe month of June of the year one thousandnine hundred and forty-eight in the English,French and Spanish languages, each text beingof equal authenticity.This Convention shall be deposited in thearchives of the International Civil AviationOrganization where in accordance with ArticleXVIII, it shall remain open for signature.