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The International Registry established under the Convention on International Interests in Mobile Equipment (the Convention) provides for the electronic registration and protection of ‘international interests’ in aircraft assets.
The Registrar of the International Registry (the Registry) has its centre of administration in Ireland so, under Article 44 of the Convention, the Irish Courts have exclusive jurisdiction to make orders against the Registrar. This gives the Irish Courts a significant role in upholding the integrity and reputation of the Registry, as the only forum for applications seeking the discharge of invalid and/or improper registrations.
ALG recently acted on behalf of international lessors in two separate applications of this type before the Irish Commercial Court List, a specialist division of the High Court. Like his predecessors, Mr Justice Sanfey (the recently appointed Judge presiding over the Commercial List) dealt with these applications in a practical, efficient and effective manner.
Background
In the first of the two applications, our client, a Pakistani asset owning entity (AOE), made an urgent application to the Irish Court in circumstances where the proposed closing date for the sale of aircraft engines was fast approaching. The proposed purchaser had indicated that it would not proceed with the sale unless a series of historic international interests registered over the engines on the Registry were discharged. It transpired that the Right to Discharge Holders of the historic international interests, two Cayman-based entities, had been dissolved and therefore did not have the ability nor capacity to arrange the relevant discharges (the First Application).
In the second application, our client, a US based AOE, had repossessed certain aircraft assets following events of default. Unlike the First Application, the Right to Discharge Holder of the relevant international interests was an active entity, but it was unable and/or unwilling to discharge the relevant registrations on the Registry. Our client outlined in their application papers how the absence of clear title would impede any potential sale involving the objects in the future, thus requiring the intervention of the Irish Courts (the Second Application).
The Applications
The Convention specifies the procedure to be followed in applications of this type.
As it is not open to the Registrar to discharge registrations from the Registry without a Court Order, the Registrar is required to be listed as a Respondent in all Court applications of this type. In respect of the Second Application, in circumstances where the Right to Discharge Holder was an active entity, it was also required to be listed as a Respondent to the application. Notwithstanding this, the entity did not appear before the Court at the application hearing.
Generally, it is preferable that applications relating to the Convention are made in the Commercial List of the High Court, allowing an expedited resolution and access to judges with experience in aviation related disputes and applications. Entry to the List is a separate Court application which is subject to the discretion of the Judge in charge of the Commercial List and must fall under one of grounds for entry which are set out under Order 63A of the Rules of the Superior Court. Notably, Order 63A, rule 1(h), is a tailor made rule which provides that proceedings by or against the Registrar in connection with functions under the Convention, are appropriate for entry to the list.
Both the First and Second Applications were made before the Irish Commercial Court.
The Result
Given the urgency associated with the Applications to be determined, ALG sought a same day hearing for:
The Commercial Court was in a position to hear both applications on the same day. This practice has developed on the basis of a general understanding by all parties that it is imperative that any and all invalid and/or improper registrations should be removed as soon as possible in order to maintain the integrity and the reputation of the Registry.
In both applications, the Registrar took a neutral stance on the application. Once entry to the Commercial List was granted, the Court made Orders requiring the discharge of the registrations:
It is noteworthy that Orders were made in both applications within 2 weeks of the proceedings being issued, which enabled our clients to meet their respective commercial objectives.
Comment
The Irish Courts’ efficient application of the Convention emphasises its commitment to promoting commercial certainty in the aviation finance and leasing industry, facilitating further cross-border transactions. As outlined above, ensuring the Registry is accurate is not just an administrative formality, it is vital to ensure the integrity of the Registry. As the courts of the place in which the Registrar of the International Registry has its centre of administration, the Irish Courts have a unique role in enforcing compliance by all parties with Article 25 of the Convention.
For further information, please contact Tom Casey, partner, Gillian Cantrell, senior associate, Rachel Malone, Solicitor, or your usual ALG Disputes team contact.
Date published: 15 July 2025
