An active retractable seal assembly is configured for use between a rotating component and a stationary component of turbo machinery is disclosed. The seal assembly includes a seal mounted to the stationary component. The seal is movable towards and away from the rotating component between a respective closed position and an open position as a function of pressure drop across the seal. The seal includes an active seal segment, a non-active seal segment, and a fluid by-pass circuit. The fluid by-pass circuit is configured for directing fluid around the active seal segment to reduce pressure drop across the active seal segment thereby resulting in the active seal segment moving towards an open position under the action of one or more biasing devices while maintaining the non-active seal segment in a closed position.