The Delhi High Court on July 24 sought a response from grounded airline Go First's lessors over an application by the Committee of Creditors (CoC) of the airline to be included in the former's plea against the Director General of Civil Aviation (DGCA) to de-register their aircraft.
During the hearing, the lawyer for the CoC argued that any order passed in this case will have a bearing on them. Objecting to the plea, the lessors argued that the airline's resolution professional, who is already a party to the proceedings, represents the interest of the CoC. The lessors thus argued that CoC need not be impleaded.
The court has asked that the aircraft lessors file responses to CoC's plea.
The case will now come up for hearing on August 3, where the court is expected to decide on whether the CoC can be made a party to the proceedings. The court has also directed that all the pleadings be completed by the next date of hearing.
Appeal rejected
A CoC is formed once a company is admitted to insolvency. It is a body of financial creditors that represents the interest of stakeholders. The voting percentage in the committee is proportional to the amount a financial institution has lent to the company in insolvency.
On July 12, a two judge bench of the Delhi High Court refused to entertain an appeal by Go First's Resolution Professional (RP) challenging a previous order that had allowed lessors to conduct inspections of 30 aircraft and their parts at regular intervals. The court upheld the decision, granting permission to the lessors to carry out inspections regularly.
The court, however, permitted Go First to continue maintaining the aircrafts.
On July 5, a single-judge bench of the Delhi High Court granted permission to the lessors to inspect and perform maintenance work on their 30 leased aircraft and their parts twice a month. The order also prohibited Go First's resolution professionals and employees from removing, replacing, or taking out any part or component of the leased aircraft without the explicit permission of the lessors.
Order upheld
The aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation and SMBC Aviation, filed a writ with the Delhi High Court seeking instructions to release the planes leased to Go First, which is currently facing financial distress.
On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the National Company Law Tribunal's (NCLT) order to admit Go First's plea for insolvency.
On May 10, the principal bench of the NCLT in Delhi accepted Go First's voluntary plea to initiate an insolvency resolution process. As a result, the tribunal appointed an Insolvency Resolution Professional (IRP), suspended the board and imposed a moratorium on the airline's financial obligations.
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