Delhi HC allows Go First lessors to deploy security around aircraft

The Delhi High Court on Thursday allowed Go First lessors to deploy security personnel for the grounded aircraft and directed the Resolution Professional (RP) of the airline to share documents related to the maintenance of aircraft, engines, and airframes with the lessors within two weeks.

However, the RP will continue to maintain the aircraft.

The order was passed on the lessors' plea to allow them to maintain their aircraft. The next hearing is on October 19.

Justice Tara Vitasta Ganju also told the Directorate General of Civil Aviation (DGCA), acting through the Bureau of Civil Aviation Security (BCAS), to grant lessors access to technical documents, maintaining records of airworthiness of the aircraft.

The lessors had earlier told the court that the RP was not maintaining the aircraft as per court orders and there were 'greenish deposits,' 'corrosion,' and 'rusting' on the leased planes.

DAE (SY 22)13 Ireland, who has leased two aircraft to Go First, said that protective covers around the leased aircraft were also removed. The lessor's counsel told the court that if the Resolution Professional (RP) of the airline says the airline should fly, they should demonstrate that. "If the RP, in good faith, says we should be able to fly, you should be able to demonstrate that. It is the duty of the RP to demonstrate that," the lessor told the court.

The Delhi High Court reserved its orders on three applications filed by aircraft lessors of the airline seeking permission to maintain their aircraft.

The lessor's lawyer also alleged that the condition of the leased aircraft deteriorates every time it is inspected. "It is the duty of the RP to ensure that the maintenance is carried out in a correct manner," he said.

The lessor added that the RP is not giving them access to key documents of the aircraft, such as maintenance records, which are essential to discern if the aircraft are being 'maintained in a fly-worthy condition'. "Aircraft should be in flyworthy condition. If the RP is carrying out maintenance, it is their duty to show that to the court," he said.

Other lessors, such as BOC Aviation Ireland and ACG Aircraft Leasing, have also filed similar applications. ACG Aircraft Leasing told the court that critical parts, such as fan blades, escape slides, and other parts are missing from at least two planes.

Another lessor has meanwhile sought directions to Go First to replace "robbed" parts of its leased aircraft. They have also sought round-the-clock security for their grounded aircraft.

Meanwhile, the RP's counsel had questioned why the lessors were moving both the Delhi High Court and the National Company Law Tribunal (NCLT) for the same relief. He said that the division bench order of the Delhi High Court had modified the single judge's order on July 12, so the lessors should now go to the division bench for relief.

This comes as a second blow to the airline after the Ministry of Corporate Affairs (MCA) on October 3 exempted all transactions and agreements related to aircraft and their engines from the moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC). The MCA's notification will allow lessors to promptly take their planes back from airlines.

Go First had filed for insolvency in May, after which the moratorium period kicked in, meaning that the aircraft could not be taken back by the lessors. The lessors had then moved the NCLT as well as the Delhi High Court to access the leased aircraft.