Delhi HC defers hearing of contempt plea against Go First RP to April 5

HC to hear contempt plea against RP on April 5

The Delhi High Court on March 15 deferred the hearing of contempt petition filed by aircraft lessors against the Resolution Professional (RP) of grounded airline to April 5.

The HC has, meanwhile, directed the RP to file a reply to its show cause notice asking why contempt of court proceedings should not be initiated against him. The HC issued the notice after the lessors alleged that the RP did not comply with its orders on maintaining the aircraft. 

During the course of the hearing, senior advocate Neeraj Kishan Kaul, who appeared for the RP, told the court that modalities for maintenance of the aircraft had been in place for quite sometime now. Kaul further urged the lessors to contact to RP to work things out in case they find a problem. Despite Kaul's attempts at explaining to the court that there was no attempt by the RP to deliberately be in non-compliance of the court's order, Justice Tara Vitasta Ganju insisted the RP file an affidavit in this regard in two week.

On March 7, the RP has agreed to hand over the task of maintenance of aircraft to the lessor. The lessor sought time to respond to this suggestion, however the lessors told the court today that RP had sent a communication to this effect late last evening and sought more time to take instructions on the same.

The above transpired when the court was hearing a contempt plea by the airline's lessor alleging that the carrier's RP had wilfully refused to comply with the court's orders on maintenance of their grounded aircraft. "The RP's wilful refusal to grant the petitioner access to its aircraft records/documents is in clear and deliberate violation of the judgment dated October 12," the plea filed by DAE (SY22) 13 Ireland Designated Activity Company read.

In response to the contempt plea, the RP had said that none of the 2278 employees on the airline's rolls are reporting to work. The affidavit filed by the RP said: "As of the insolvency commencement date, the number of employees on the rolls of Go First stood at 4,621. However, as of October 10, approximately 2,278 employees remain on the rolls of the Company, out of which none are at present reporting to work." The RP also contended that with no revenue being generated by the airline, they also have financial constraints. However, the RP had offered to engage a third-party agency to maintain the aircraft that are currently in possession of the airline.

Go First was admitted into insolvency resolution process in May 2023, after it filed a voluntary insolvency plea. Shortly thereafter, the lessors of the airline's 54 aircrafts moved the Delhi HC against the DGCA, asking it to direct the authority to deregister their aircrafts.