Go-First Resolution Professional Seeks High Court Permission for Lessors to Preserve Aircraft
The interim resolution professional (IRP) of crisis-hit airline Go First has approached the Delhi High Court, challenging the permission granted to lessors to inspect their aircraft and carry out maintenance. The IRP, appointed under the insolvency law to manage the airline, argues that the order of the single judge granting interim relief to the lessors on their petition seeking deregistration of their planes goes against the law.
A division bench headed by Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula has listed the appeals for further hearing on July 11. In the meantime, the court has instructed the parties involved to refrain from taking any action based on the single judge’s order.
Go First
The single judge, in a judgment passed on July 5, had allowed the lessors to inspect their aircraft at least twice a month and carry out maintenance work. The order also restrained the resolution professional and other parties from removing, replacing, or taking out any part, components, or records of the 30 aircraft in question without the prior written approval of the specific aircraft’s lessor.
Senior advocate Neeraj Kishan Kaul, representing the appellant, emphasized that taking away control over the fleet of aircraft would pose significant challenges in keeping the airline operational and ensuring its revival. However, he assured the court that efforts were underway to maintain the airline as a going concern and resume its operations soon.
Senior advocate Ramji Srinivasan, also representing the appellant, pointed out that even in the petitions before the single judge, the lessors had requested the resolution professional to maintain the aircraft.
Anjana Gosain, counsel for the Directorate General of Civil Aviation (DGCA), clarified that the applicable framework authorized only Go First to oversee the day-to-day maintenance of the aircraft, and the lessors would need approvals for the same.
Previously, several aircraft lessors of Go First had approached the single judge seeking the deregistration of their planes by the DGCA, allowing them to take back the leased aircraft. While granting interim relief, the single judge had directed the DGCA to permit the lessors, their employees, and agents to access the airport where the aircraft was parked and carry out inspections.
NCLT appointed Resolution Professional
The NCLT-appointed resolution professional, responsible for managing Go First, had informed the high court earlier that returning aircraft to the lessors would essentially render the airline “dead,” jeopardizing the livelihoods of its 7,000 employees.
On May 10, the National Company Law Tribunal (NCLT) admitted Go First’s voluntary insolvency resolution petition and appointed Abhilash Lal as the interim resolution professional to oversee the carrier’s operations.
Due to the moratorium on financial obligations and the transfer of assets in the wake of the insolvency resolution proceedings, the lessors have been unable to deregister and reclaim the aircraft leased to Go First.
The lessors had previously argued before the single judge that the denial of deregistration by the DGCA was “illegitimate.” They had approached the civil aviation regulator to request the deregistration of their aircraft, but their pleas were rejected.
The lessors who have approached the high court include Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, SMBC Aviation Capital Limited, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd, ACG Aircraft Leasing Ireland Ltd, and DAE SY 22 13 Ireland Designated Activity Company.
Go First ceased operations on May 3, contributing to the turmoil faced by the aviation industry. The ongoing legal battle over the preservation and maintenance of the aircraft will play a crucial role in determining the future prospects of the airline and the interests of the lessors involved.
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