The National Company Law Tribunal (NCLT) on July 11 ordered the release of four aircraft engines that are in the possession of the now grounded airline Go First. All the four engines are owned by Engine Lease Finance BV.
The airline's resolution professional (RP) told the tribunal that they did not have any objection to the engine being released. The RP further told the tribunal that they had in fact initiated the process of returning one engine already.
Lawyer Anandh Venkatramani, who appeared for the engine lessor, told the court that the application could be disposed off in the light of the high court order. Venkatramani further argued that Go First has chosen not to file an appeal against it, hence the order has attained finality.
Lawyer Diwakar Maheshwari, who appeared for the RP, told the NCLT that he had not objection if the engine is released. Thus the NCLT passed the order releasing the engines.
Venkatramani was briefed by law firm Tuli and Co through its partner Saket Satapathy.
Since majority of the other lessors sought time to take instructions on the future course of action of the case, it was adjourned to August 9.
On June 12, the NCLT extended the Corporate Insolvency Resolution Process (CIRP) of the grounded airline Go First by 60 days after it was told that three parties had shown interest in taking over the carrier. The tribunal made it clear that this was the last extension they are giving to the airline.
Go First is now aircraft-less after the Delhi High Court on April 26 directed the aviation regulator Director General of Civil Aviation (DGCA) to deregister the aircraft. Subsequently, the DGCA deregistered all of its 54 aircraft in the first week of May.
The court had directed that all maintenance tasks in respect of the aircraft will be undertaken by the lessors and all their authorised representatives up to and until the time the aircraft are de-registered and exported, in pursuance of Rule 32A of the Aircraft Rules.
While the DGCA had initially said that it could not deregister these aircraft owing to the moratorium having set, the Ministry of Corporate Affairs issued a notification on October 4, 2023 stating that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC), would not be applicable to transactions, arrangements or agreements relating to aircraft, aircraft engines, airframes and helicopters.
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