Go First case: Delhi HC reserves applications by lessors on maintenance for orders

Go First

The Delhi High Court on September 22 reserved orders in three applications filed by aircraft lessors of the grounded airline Go First seeking permission to maintain their aircraft.

The lessors have alleged that the Resolution Professional (RP) of the airline is not maintaining the aircraft as per the law and directions of the court. One of the lessors, DAE (SY 22) 13 Ireland alleges that as one of the lessors of the grounded airline Go First, the condition of the leased aircraft is deteriorating every time it is inspected.

DAE, who has leased two aircraft, has further alleged in their application that the Resolution Professional (RP) is not giving them access to key documents of the aircraft, such as maintenance records, which are essential to determine if they are being maintained in an airworthy condition

Other lessors, such as BOC Aviation Ireland and ACG Aircraft Leasing, have also filed similar applications. ACG Aircraft Leasing has alleged that fan blades, escape slides and many critical parts are missing from at least two planes. Another lessor has sought for directions to Go First to replace "robbed" parts from its leased jets and allow it to appoint round-the-clock security to guard grounded aircraft.

The RP's lawyer questioned the conduct of these lessors for moving both the Delhi High Court and the National Company Law Tribunal (NCLT). Furthermore, noting that a two-judge bench of the Delhi High Court modified the single judge's order on July 12, the RP has stated the lessors should approach the division bench for any sort of order on inspection and maintenance.

The main writ petition is now likely to be heard on October 5 at 3:30 PM

Go First was admitted to insolvency on May 10 by the National Company Law Tribunal (NCLT).

Aircraft lessors approached the Delhi High Court filing a writ petition against the Director General of Civil Aviation (DGCA) to deregister their aircraft. On July 5, the HC permitted the lessors to inspect and perform maintenance work. However, a division bench of the Delhi HC on July 12 modified the order to the extent that the lessors could only inspect the aircraft while the RP could carry out maintenance.