Air Navigation and Transport (Amendment) Act, 1998

Detention and sale of aircraft for unpaid airport charges.

40.—(1) Where a person (in this section referred to as “the defaulter”) defaults in paying charges imposed by the company under section 39 , the company may, subject to the provisions of this section, detain, pending payment of such charges—

(a) the aircraft in respect of which the charges were incurred (whether or not they were incurred by the person who is the operator or the registered owner of the aircraft at the time when detention commences), or

(b) any other aircraft of which the defaulter is the operator or the registered owner,

and if the charges are not paid within 56 days of the date when the detention commences, sell, subject to subsection (4), the aircraft in order to satisfy the charges.

(2) The company shall not detain or continue to detain an aircraft under subsection (1) if the operator or registered owner of the aircraft or any person claiming an interest in the aircraft claims that the charges concerned, or any of them, are not due, and gives the company, pending the determination of the question as to whether or not the charges are due, sufficient security as determined by the company for the payment of the charges which the company alleges are due.

(3) For the purpose of effecting the detention of an aircraft under subsection (1), an authorised person may enter the aircraft and do all things in relation to the aircraft necessary for or incidental to the said purpose.

(4) If the company proposes to sell an aircraft that it has detained under subsection (1), it shall apply to the High Court for leave to sell the aircraft and the High Court shall give such leave on it being established that—

(a) a sum is due to the company for airport charges,

(b) default has been made in the payment thereof, and

(c) the aircraft that the company seeks leave to sell is liable to sale under subsection (1) by reason of the said default.

(5) (a) If the company proposes to apply for leave to sell an aircraft under subsection (4), it shall take such steps as are practicable for bringing the proposed application to the notice of persons whose interests are likely to be affected by the determination of the court thereon.

(b) Failure by the company to comply with a requirement of this subsection in respect of any sale shall not, after the sale has taken place, be a ground for impugning the validity of such sale, but this paragraph shall not prejudice any action for damages against the company by a person suffering loss in consequence of a failure aforesaid.

(6) The following provisions shall have effect in respect of an order of a court granting leave under subsection (4) for the sale of an aircraft (in this subsection referred to as “the order”) and the sale of the aircraft on foot of such order:

(a) the order shall contain a declaration that the company shall have the right to transfer the aircraft and the company shall by virtue of such declaration be entitled to transfer the aircraft in the same manner and to the same extent as if it were the owner thereof;

(b) the sale shall operate to vest the aircraft in the purchaser freed of all mortgages, liens, charges or other interests therein whatsoever, and the purchaser shall not require any other evidence of the title to the aircraft than a copy, certified by the company, of the order.

(7) Where the company sells an aircraft, registered under section 9 or 10 of the Act of 1946 or section 58 of the Act of 1993, in accordance with this section it shall, by notice in writing, inform the Authority of the sale and such notice shall contain particulars of the sale.

(8) If the company sells an aircraft under this section it shall ensure that the aircraft is sold for the best price that can reasonably be obtained.

(9) The proceeds of a sale under this section shall be applied as follows, and in the following order, that is to say—

(a) in payment of any duty (whether of customs or excise) or value-added tax chargeable on the aircraft, in the State,

(b) in payment of the expenses incurred by the company in detaining, keeping and selling the aircraft (including the expenses in connection with any application to a court under subsection (4)),

(c) in payment, in accordance with subsection (10), of—

(i) the airport charges found to be due by the defaulter to the company, on an application under subsection (4), and

(ii) charges under section 43 or 44 of the Act of 1993 that a court has found to be due by the defaulter to the Authority, Eurocontrol or the Minister,

and the surplus, if any, of such proceeds shall be paid to the person or persons whose interest or interests in the aircraft have been divested.

(10) The proceeds of a sale under this section shall, in payment of the charges referred to in paragraph (c) of subsection (9), be applied, as between those charges, in such amounts as are proportionate to the sums owing in respect of those charges.

(11) The power of detention and sale conferred by this section in respect of an aircraft shall extend to the equipment of the aircraft and any stores for use in connection with the operation of the aircraft (being equipment and stores carried in an aircraft) whether or not such equipment or stores is or are the property of the person who is the registered owner or operator of the aircraft and accordingly references to an aircraft in subsections (1) to (9) shall include, except where the context otherwise requires, references to any such equipment and stores.

(12) The power of detention conferred by this section in respect of an aircraft shall extend to any aircraft documents, and any such documents may, if the aircraft is sold under this section, be transferred by the company to the purchaser of the aircraft.

(13) Nothing in this section shall prejudice any right of the company to recover airport charges or any part thereof, by action.

(14) In this section “aircraft documents” means certificates, records or other documents relating to the use of an aircraft or its equipment, including any certificate of registration, maintenance or airworthiness of that aircraft, any log book relating to the use of that aircraft or its equipment and any similar document, and includes any record required to be made by virtue of regulations under section 43 of the Act of 1993.