 "Go First")
The Delhi High Court on Wednesday allowed lessors of Go First to do inspection and maintenance relating to the aircraft in possession of the insolvent airline until final disposal of the writ petition (of the lessors).
Work will be done at least twice a month, the court said. The issue of deregistering the aircraft will be decided later.
Go First stopped flying on May 3.
Go First operated around 200 flights daily before suspending operations. The airline has 54 aircraft, of which 28 are grounded due to engine woes.
The airline has proposed to revive 22 aircraft and four are on standby in accordance with its plan.
Lessors have terminated the leases of 45 of the 54 aircraft in the Go First fleet.
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The court said the aircraft were valuable and required maintenance.
“The lessors and their representatives shall be allowed by the Directorate General of Civil Aviation (DGCA) and Airports Authority of India (AAI) to access the airport where the 30 aircraft are parked to inspect their respective aircraft,” Justice Tara Vitasta Ganju orally gave the order.
“The respondent, Go Air, its directors, employees, agents, officers or representatives, or the Resolution Professionals or their representative as appointed by the National Company Law Tribunal (NCLT), Delhi, are hereby restrained from removing, replacing, taking out any part or component, etc or any relevant operational or other manual records, documentation from any of 30 aircraft except with prior written approval of lessor of such aircraft,” the court said.
Senior advocate Arun Kathpalia, appearing for SMBC Aviation Capital, said: “There is another issue that is arising. In respect of the aircraft whose leases have been terminated, which they cannot deal with even while this matter is pending before your ladyship, they (Go First) have submitted some kind of proposal before the DGCA as a revival and flying of the aircraft and the DGCA is now considering that proposal.”
Justice Ganju asked: “Why don’t you have a look at the judgment and see whether you need to move any appropriate application?”
“We will do that,” Kathpalia said.
The court at the end of the pronouncement said: “Any submissions from the parties needs to be filed at least one week before the next hearing. List the matter on August 3. Pleadings are to be completed by the parties within the timeline as mentioned above.”
A lawyer from Go First’s side said the order did not mean the court had restrained the airline from operating the planes.
A lawyer on the side of the lessors was of the view that since the order said the airline could not touch the aircraft, it could not possibly operate them.
Both sides said they could comment once the order was uploaded.
The Delhi High Court had on June 1 reserved its order on petitions filed by Go First’s lessors against the Directorate General of Civil Aviation (DGCA) for the release of their aircraft in possession of the airline.
The DGCA had told the high court it had not rejected the application of Go First’s lessors for deregistering the aircraft but had kept the process (of deregistration) in abeyance because of the moratorium.
A moratorium is the suspension of all or certain legal remedies against a debtor (in this case Go First).
The lessors of Go First had moved the high court against the DGCA shortly after the National Company Law Appellate Tribunal on May 22 upheld the Delhi Bench of the NCLT’s order. The NCLT admitted Go First’s voluntary insolvency application on May 10. Another case of Go First is listed before the NCLT on July 6.
The petitions were filed by Pembroke Aircraft Leasing 11 Ltd, Accipiter Investments Aircraft 2 Ltd, EOS Aviation 12 (Ireland) Ltd, DAE SY 22 13 Ireland Designated Activity Company, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd, and SMBC Aviation Capital Ltd. All the petitions were clubbed together for hearing.
The lessors had argued that, according to the Irrevocable De-registration and Export Request Authorisations (IDERA), it was mandatory for the DGCA to deregister the aircraft upon their request.
The lessors told the court that according to Rule 30(7) of the Aircraft Rules, 1937, the registration of an aircraft in India to which the Cape Town Convention applied would be cancelled by the Central government without seeking permission from the aircraft holder if an IDERA holder (lessors) gave an application for cancelling the lease.
“There is no concept of rejection or abeyance. They (DGCA) have to cancel leases,” Kathpalia, appearing for SMBC Aviation, had said.
Accipiter, meanwhile, argued Go First could not resume operations because the aircraft was not theirs to fly.
“How can they fly the planes when Indian life will be put at risk,” counsel for Accipiter asked.
Justice Ganju heard the arguments till 6 pm on June 1 and reserved the order.
