Go First Lessors Granted Aircraft Inspection and Maintenance Access by Delhi HC
According to news agencies, the Delhi High Court granted permission to leasing companies to conduct inspections and maintenance on aircraft leased to Go First. However, the court ruled that the leasing companies are still unable to repossess the aircraft as the airline’s operations remain halted.
Go First’s lessors have been actively seeking to recover the planes due to missed payments and have submitted more than 50 requests to the regulatory authority for repossession. The lessors contend that the airline has no legal rights over the aircraft as they have terminated the leases. However, both the Indian government and the airline contend that the bankruptcy law enforces an asset freeze.
The Delhi High Court judge declared on Wednesday that the leasing companies are permitted to “access the airport” and conduct inspections on the aircraft. They are also allowed to carry out interim maintenance activities at least twice a month.
Go First’s Operation
Earlier, the court-appointed Insolvency Resolution Professional (IRP) responsible for overseeing Go First’s operations expressed concerns that returning the leased aircraft to the lessors would effectively kill the airline, which employs 7,000 individuals.
On May 10, the National Company Law Tribunal (NCLT) accepted Go First’s voluntary petition for insolvency resolution, appointing Abhilash Lal as the IRP in charge of managing the airline.
The ongoing insolvency resolution proceedings provide Go First with protection under a moratorium, which prohibits the transfer of assets and imposes financial obligations. Consequently, the lessors are unable to deregister the aircraft and reclaim them.
Previously, the lessors had argued in the high court that the Directorate General of Civil Aviation’s refusal to permit deregistration was unjustified and unlawful.
The lessors listed below have filed a petition in the high court: 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, and DAE SY 22 13 Ireland Designated Activity Company.
On May 10, the NCLT granted the request for voluntary insolvency resolution filed by Go First.
On May 22, the NCLAT upheld the decision of the NCLT’s principal bench in Delhi, which had accepted Go First’s request to initiate voluntary insolvency resolution proceedings and appointed the IRP to suspend the company’s board.
Multiple lessors have approached the aviation regulator seeking deregistration and repossession of 45 leased planes that were in possession of the carrier.
Go First ceased operations on May 3.
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