SC rejects Go First plea against Delhi HC nod to lessors to access planes

On August 3, the airline had moved to Supreme Court against the Delhi HC's order to allow lessors to inspect the aircraft

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The Supreme Court on Monday dismissed the appeal filed by Go First against the Delhi High Court order allowing aircraft lessors to access the aircraft they had leased to the airline, as reported by Bar and Bench.

A bench comprising Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Mishra said that the ailing airline was already presented before the HC, thus, there was no valid reason to restrain the ongoing proceedings.

On August 3, the airline moved the Supreme Court against the Delhi HC's order to allow lessors to inspect the aircraft. They were also allowed to carry out the maintenance work of the aircraft.

Earlier, the lessors had filed applications for the de-registration of planes, but it was rejected by the Directorate General of Civil Aviation (DGCA).

The lessors had then informed HC that future aircraft leasing would be jeopardised if the (DGCA) failed to de-register aircraft whose leases had been terminated. Senior Advocate Mukul Rohatgi, representing one of the lessors, said the involuntary retention of their aircraft reflects negatively on the Indian aviation sector.

He had also noted that while the civil aviation regulator has not out rightly rejected their request for de-registration, it has been placed in abeyance due to the ongoing moratorium.

A moratorium is a period during which most or certain legal actions against a debtor are suspended. It commences once a company enters insolvency or bankruptcy proceedings.

The lessors argued that, under the Irrevocable De-registration and Export Request Authorisations (IDERA), the DGCA is obligated to de-register the aircraft upon their request.

They previously told the court that, according to Rule 30(7) of the Aircraft Rules, 1937, the Central government could cancel the registration of an aircraft in India, to which the Cape Town Convention applied, without needing the aircraft holder's permission, if an IDERA holder (lessors) applied for lease cancellation.