Delhi HC seeks Go First’s response to aircraft lessor’s contempt plea

The contempt case will now come up for hearing on December 12

The Delhi High Court on December 5 directed the Resolution Professional (RP) of grounded airline Go First to file a response to a contempt plea by an aircraft lessor  alleging that the carrier's RP was wilfully refused to comply with the court's orders.

The RP has been directed to file a response in the form of an affidavit by December 10. The court further directed that its orders directing maintenance of the aircraft and other parts need to be followed. The contempt case will now come up for hearing on December 12.

DAE (SY22) 13 Ireland Designated Activity Company, an aircraft lessor filed a contempt plea stating "The RP's wilful refusal to grant the petitioner access to its own aircraft records/documents is in clear and deliberate violation of the judgment dated October 12."

Furthermore, the plea stated that there is an apprehension that the components of the aircraft have been "cannibalised". The lessor has also contended that the RP has not permitted them to inspect the aircraft from September.

DAE (SY22) 13 Ireland Designated Activity Company, has thus asked the court to pass an order holding the RP guilty of contempt and "be held to be deemed to have committed contempt, and be directed to undergo civil imprisonment and pay a fine".

Delhi High Court litigation

The lessors moved a plea in the Delhi HC against the DGCA, requesting the court to direct the authority to deregister their aircraft. They argued that the authority should deregister the aircraft if demanded by lessors.

On July 5, the High Court, in an interim order, permitted the lessors to inspect and perform the maintenance work. However, a division bench of the Delhi High Court on July 12 modified the order to the extent that the lessors could only inspect the aircraft while the insolvency resolution professional (RP) appointed under the IBC could carry out maintenance. The Supreme Court upheld the order of the Delhi High Court.

As the case progressed, the lessors accused the RP of not maintaining the aircraft and told the court that their assets were at risk of being rendered useless. DAE (SY 22) 13 Ireland alleged that the condition of the aircraft was deteriorating every time it inspected the planes.

DAE, which has leased two aircraft, alleged in its plea that the RP was not giving it access to documents such as maintenance records, which were essential to determine if the planes were being maintained in an airworthy condition.

On October 12, the High Court permitted the lessors of the grounded airline to engage security personnel to monitor their aircraft, engine and other parts. “A review of the documents and photographs filed by the Petitioners/Lessors show the evident cannibalisation of the Aircraft,” the high court order said.