Clarifications

VII SURANA & SURANA AND
UPES SCHOOL OF LAW,

NATIONAL INSOLVENCY LAW
MOOT COURT COMPETITION 2024
10 th August 2024 | 6 th - 7 th September 2024

H Y B R I D M O D E
CLARIFICATIONS
Moot Court Committee, School of Law, UPES [email protected] MCC MOOTING BLAWG, UPES
SCENARIO 1
1. Was there any reason for the default in payment by Airfly?

Ans. No clarification is required.
2. Are the leased aircraft sole assets of Airfly?

3. Is the lease agreement signed between Airfly and Redsky sole agreement?
Ans. There were separate agreements with respect to three Subject Aircraft only.
4. In Para no. 11, Whether Airfly executed IDERA only for Aircraft 1 and Aircraft 2.
Ans. It is for Subject Aircraft as mentioned in Paragraph 8.
5. Under what reason did Airfly file Insolvency?

Ans. No Clarification is required.
6. In Para no. 17, under what reason it mentioned two dates (11/05/23) & (12/05/23)?
Ans. The dates refer to the dates of the rejection of Deregistration applications as
the applications were filed separately for Subject Aircraft.
7. Under which provision, Redsky approached the Welhi High Court?

Ans. Kindly refer to paragraph 17. It is after being aggrieved by the decision of
DGCA under Writ Petition.
8. Whether the term ‘engines’ written in paragraph 13 (line 5) of the Case Record is
meant to be Aircrafts or engine only?
Ans. They are meant to be aircraft as well as engines.
9. Which country’s laws shall apply to Nialand?

10. What is the date of filing an application for deregistration of Subject Aircraft by
Redsky?
1
11. In paragraph 8, Aircraft 1, 2 & 3 are mentioned as Subject Aircraft. However, in
paragraph 11 IDERA has been executed only for Aircraft 1 & 2 which is mentioned
as Subject Aircraft. So is IDERA only for Aircraft 1 & 2 or is this a mistake and
we assume it to be executed for all three aircraft?
Ans. It is assumed to be executed for Subject Aircraft.
12. Who is Airbus S.A.S? There is no prior mention of this party and no subsequent
mention of the same.
Ans. It is the manufacturing company of aircraft which provides warranties and
other services.
13. Which Engines have been leased?

Ans. The engines shall be considered as part of Subject Aircraft in the present
case.
14. What is the type of registration of the aircrafts?

15. What is the date of application for initiation of CIRP under Section 10?
Ans. The application for initiation of CIRP was filed on 17th April, 2023.
16. In scenario 1, what are the terms and conditions of the lease agreement, specially of
that of the issuance of the termination, grounding and default notices between the
parties?
Ans. No clarification is required. However, the teams can look into the general
grounds for the termination of the lease agreement.
17. Have Nialand and Malta entered into any sort of agreement that makes the Aircraft
Rules applicable to two Aircraft entities which have entered into lease agreements?
This is to be read as per Rule 1(4) of the Aircraft Rules, 1937.
Ans. There is no BIT executed in the present case but both the countries are
signatories to the Cape Town Protocol.
2
SCENARIO 2
1. What is a credit furnishing agreement and what does it contain?

Ans. The Credit Furnishing Agreement was a contract created to regulate the
financial aspects of the project that was undertaken by Wayne Enterprises and
Bruce Buildings Ltd. This Contract further contained clauses which were aimed to
regulate circumstances under which loan facilities are availed by one party from
the other.
2. What is the definition of mortgaged debt as per the mortgage deed executed by
Luthor?
Ans. No such definition has been explicitly stated in the mortgage deed.
3. Paragraph 23 states that the CFA was executed on June 9th 2024. However, the date
of hearing in appeal to the Supreme Court of Malta is June 8th, 2023. The appeal
cannot be before the execution of CFA. What was the date of execution of the CFA?
Ans. The parties signed the Credit furnishing agreement on June 9th 2022.
4. Paragraph 23 states that Bruce Buildings Ltd. availed multiple loans from Wayne
Enterprises under the CFA. Paragraph 26 states that Bruce Buildings Ltd. borrowed
multiple loans at varying interest rates from Wayne Enterprises. Do these loans at
multiple interest rates come under the CFA in itself or is it different? If not, then are
they being recovered from Luthor?
Ans. All the loans undertaken by Bruce Buildings Ltd. from Wayne Enterprises are
covered under CFA
5. Paragraph 30 cites the clauses 7 & 8 of the CFA. Clause 7 states “pursuant to the
finance documents.” What are these finance documents?
Ans. The date for the constitution of the 5- Judge Bench is 08.06.2024.
6. What is the relation between the obligers?

Ans. No Clarification is required.
3
SCENARIO 3
1. The default occurred in 2023, what is the penal interest that would be now
charged if the amount is to be paid after the arbitral award is received?
Ans. The application was filed before NCLT and no arbitral award is passed in
the present case.
2. Whether the interest rate of the loan provided by DKLF bank in Scenario 3 is
Simple or Compound Interest?
Ans. The loan was provided on simple interest.
3. What exact project or what is the scope of the investment agreement between
elcom and GMY Pvt. Ltd.?
Ans. The investment would be utilised for operational expansion and technical
innovation to provide more efficient services toits customers.
4. On what grounds did NCLT deny the Section 7 application in Scenario 3?

Ans. The NCLAT upheld the decision of the NCLT in the present case. Kindly
refer to Paragraph 40 of the case record.
5. Is the date of the constitution of the

1. 5-Judge Bench by the Chief Justice is
08.07.2023 or08.07.2024, given that the NCLAT rejected the order on
22.08.2023?
Ans. The date for the constitution of the 5- JudgeBench is 08.06.2024.
6. Did Relcom Ltd and GMP Private Ltd execute the crucial investment agreement
worth $250 million in 2023? Because in the proportion the scenario states only
will be executed?
Ans. Yes, the investment agreement was executed in 2023.
Note: This is informed to all the participants that 4th November 2024 shall be
considered as the date for refund which is mentioned in paragraph 41 of Scenario 3.

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VII SURANA & SURANA AND

UPES SCHOOL OF LAW,

10 th August 2024 | 6 th - 7 th September 2024

1. Was there any reason for the default in payment by Airfly?

2. Are the leased aircraft sole assets of Airfly?

5. Under what reason did Airfly file Insolvency?

7. Under which provision, Redsky approached the Welhi High Court?

9. Which country’s laws shall apply to Nialand?

13. Which Engines have been leased?

14. What is the type of registration of the aircrafts?

1. What is a credit furnishing agreement and what does it contain?

6. What is the relation between the obligers?

4. On what grounds did NCLT deny the Section 7 application in Scenario 3?

5. Is the date of the constitution of the

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