Is grounded airline Go First even capable of doing test flight, asks lessor

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"Is this airline even capable of doing a test flight today without risk to life and limb?" one of the lessors of Go First asked the Delhi High Court on Tuesday.

The court directed the Resolution Professional (RP) of grounded airline Go First to file a response to a contempt plea by an aircraft lessor, saying the RP's 'records' are 'completely in disarray', to put it mildly.

DAE (SY22) 13 Ireland Designated Activity Company, an aircraft lessor, filed a contempt plea saying the RP refused to grant them access to its own aircraft records/documents, thus violating the judgment of October 12.

The lessor said the RP wilfully refused to comply with the court's orders.

The RP has been directed to file a response by December 10, and the court asserted that its orders directing maintenance of the aircraft and other parts need to be followed. The contempt case will now come up for hearing on December 12.

"These (aircraft) are million-dollar assets. My learned friend (RP) says we are ready to fly the aircraft. In the teeth of the order, they are doing nothing. There has been no maintenance after May 19. These are court orders; they must be honoured. The longer the hearing drags on, the greater the responsibility of the RP to maintain the aircraft," the lessor's counsel said.

"If the aircraft is not being maintained, that's a problem for everyone," Justice Tara Vitasta Ganju remarked.

The lessor also said there is an apprehension that the components of the aircraft have been 'cannibalised' and the RP has not permitted them to inspect the aircraft since September.

They asked the court to hold the RP guilty of contempt and 'be held to be deemed to have committed contempt, and be directed to undergo civil imprisonment and pay a fine'.

The lessor also said that even physical inspection of the aircraft was not granted by the RP, besides the aircraft not being maintained and records not being provided to them.

In the last hearing, the RP said the National Company Law Tribunal (NCLT) has the power to decide disputes related to the Insolvency and Bankruptcy Code (IBC), 2016, and not the Delhi High Court.

"If IBC is to succeed in this country, there has to be one unified forum to extract the economic value, for maximisation of value and for successful resolution of insolvency," Senior advocate Neeraj Kishan Kaul, appearing for the RP, told Justice Tara Vitasta Ganju.

"You can't have it scattered and spread over various Tribunals to avoid conflict," he added.

Kaul said liquidation is the last refuge. "If I don't fly, where will I go? I haven't even touched upon it. People are leaving. Even handling flights are not permitted. How do I maintain aircraft without handling flights?" he asked.

Talking about staff and fund crunch, he said, "Workmen are not there. I don't have the manpower documents. I am short on manpower. I am short on finances. There was a resumption plan approved by the Directorate General of Civil Aviation (DGCA). The Committee of Creditors (CoC) gave an interim fund. That fund is exhausted. Where do I go?"

Go First filed for voluntary insolvency on May 2 under Section 10 of IBC, and on May 10, the NCLT admitted Go First’s insolvency plea.

Go First’s aircraft lessors had then filed an appeal against the NCLT order in the National Company Law Appellate Tribunal (NCLAT). The NCLAT upheld the NCLT order, and the matter was sent back to the NCLT.