Delhi HC allows lessors of Go First to carry out maintenance works of aircrafts
The Delhi High Court has allowed various lessors of insolvent airline Go First to carry out inspection and interim maintenance works of their aircraft, twice a month. The court’s order comes after the lessors had filed petitions for deregistration of the planes by the Directorate General of Civil Aviation (DGCA), in order to get them back.
The court has restrained Go First or its representatives from removing, replacing, taking out any part or component etc or any relevant operational or other manual records, documentation from any of the 30 aircrafts except with prior written approval of the lessor.
The petitioners in the case include Pembroke Aircraft Leasing 11, Eos Aviation 12 (Ireland), DAE SY 13 Ireland, SFV Aircraft Holdings Ire 9 DAC Limited, Accipiter Investments Aircraft 2, ACG Aircraft leasing Ireland Limited, GY Aviation Lease 1722 Co Limited, and SMBC Aviation Capital.
Those who leased out their planes to Go First were approaching the high court after the financially distressed airline moved the National Company Law Tribunal (NCLT) in Delhi to initiate the corporate insolvency resolution process.
The Delhi bench of National Company Law Tribunal (NCLT) on 10 May 2023 had admitted the insolvency petition filed by Go Airlines India ltd (Go First) under Section 10 of the Insolvency and Bankruptcy Code (IBC).
With the admission of the insolvency plea, the airline got an automatic protection under a moratorium from recovery by lessors and lenders. It must be recalled that the airline had made urgent plea with the NCLT to give protection against lessors taking back 42 of its planes.
The lessors had challenged the NCLT’s order, alleging that Go First was attempting to utilize the insolvency process to retain assets it did not own.
On May 22nd, the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT’s order admitting Go First’s plea for insolvency. The appellate tribunal directed the aircraft lessors to approach the NCLT with relevant applications to determine the possession of the aircraft.
Aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation, and SMBC Aviation, filed a writ with the Delhi High Court, seeking directions to release the planes leased to the financially distressed airline. The writ requested the court to instruct the DGCA to deregister the aircraft currently leased to Go First.
Also Read: Over Rs 19,000-crore claims submitted by Go Airlines ticket holders, agents, vendors and lessors
