Go’s Suspended Board Takes Preemptive Measures Against Lessors
In a new development surrounding the ongoing crisis at Go’s airline Go First, the suspended board members, led by chairman Varun Berry, have taken preemptive measures by filing caveat petitions in the Supreme Court. These petitions have been filed against four aircraft lessors – SMBC Aviation Capital, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV. The move aims to safeguard the interests of the suspended board and the airline amid the insolvency proceedings.
A party involved in a dispute file caveat petitions as precautionary legal measures. The purpose of filing the caveat petitions is to ensure that the court does not pass any orders without hearing the applicants. By filing these petitions, Go First’s suspended board members aim to secure their position and actively participate in any legal proceedings related to the airline’s insolvency case.
National Company Law Appellate Tribunal (NCLAT)
The decision to file the caveat petitions follows the recent ruling by the National Company Law Appellate Tribunal (NCLAT). On Monday, the NCLAT upheld the National Company Law Tribunal’s (NCLT) verdict from May 10, which approved Go First’s petition to initiate voluntary insolvency resolution proceedings. Consequently, the NCLT suspended the airline’s board and appointed an interim resolution professional.
While the suspended board members take measures to protect their interests, the aircraft lessors are opposing the insolvency proceedings initiated against Go First. These lessors, whose leased aircraft were terminated prior to the initiation of the insolvency proceedings, are now seeking repossession of their planes. In fact, several lessors have already approached the Directorate General of Civil Aviation (DGCA) to pursue the deregistration and repossession of Go First’s 45 aircraft.
The insolvency crisis at Go First, formerly known as GoAir, has been a major cause for concern in the aviation industry. The COVID-19 pandemic and the subsequent travel restrictions imposed worldwide have severely impacted the airline, along with many others in the industry. The prolonged grounding of flights and also reduced passenger demand have taken a toll on the financial stability of airlines, leading some to resort to insolvency proceedings.
By filing the caveat petitions, Go First’s suspended board members make an attempt to secure their position amidst the mounting pressure from the lessors who are seeking to repossess their planes. The suspended board members are determined to have their voices heard in the legal proceedings, and also to protect the airline’s interests.
Insolvency Case in Supreme Court
The Supreme Court, being the apex court in India, holds significant authority in determining the outcome of the insolvency case. The filing of the caveat petitions ensures that the suspended board members of Go First will have a chance to present their arguments and counter any claims made by the lessors in court.
As the situation unfolds, the aviation industry and stakeholders will closely monitor the legal proceedings and the actions taken by Go First’s suspended board. The outcome of the insolvency case will have significant implications not only for the airline but also for the wider aviation sector in India.
The response of the Supreme Court to the caveat petitions and its approach to addressing the claims made by both the suspended board members and the lessors is still uncertain. The case highlights the complex nature of insolvency proceedings in the airline industry and the challenges faced by all parties involved.
In the coming weeks, the legal battle between Go First’s suspended board members and the aircraft lessors will likely intensify. The Supreme Court’s eventual decision will shape the future of the airline and determine the fate of its suspended board. As the industry eagerly awaits further developments, stakeholders hope for a resolution that ensures the best possible outcome for all parties involved, including the airline’s employees.
Also, Read: Indian Aviation News
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