Go First case: Delhi HC warns RP to comply or face summons

Go First insolvency

The Delhi High Court, on September 1, orally warned the Resolution Professional (RP) of the grounded airline Go First that he would be summoned to the court personally if the court's orders were not complied with.

Justice Tara Vitasta Ganju made this observation after a lessor informed the court that they had still not been permitted to inspect their aircraft despite the court ordering such inspections in early July. It is worth noting that both the Division Bench of the HC and the Supreme Court have affirmed the order allowing lessors to inspect their aircraft.

The judge further emphasized that she would not entertain any submissions on behalf of the RP unless it was clarified to the court why the lessor had not been permitted to inspect the aircraft.

Regarding this matter, the judge stated, "Photographs speak for themselves."

During the proceedings, the court heard a new petition from a lessor who requested court orders to be allowed to inspect the aircraft. The lessor sought parity with other lessors since the High Court had already permitted many of them to inspect the aircraft.

The RP's lawyer objected to the plea, claiming that the lessor was forum shopping, as a similar order had been sought from the National Company Law Tribunal (NCLT), which was denied. However, the court noted that it could permit the lessor to inspect the aircraft even if the NCLT had not granted permission. During the arguments, the lessor asserted that the aircraft and engines were being well-maintained.

Nevertheless, the judge recalled that another lessor had presented pictures of fan blades, escape slides, and critical parts missing from the aircraft, emphasizing that the pictures spoke for themselves. The judge did not make any further comments on the issue and proceeded to hear the parties extensively.

The hearing of the Go First cases in the Delhi HC is expected to continue on September 4.

The lessors of the bankrupt airline moved the Delhi High Court against Director General of Civil Aviation (DGCAT) to de-register their aircrafts as they had terminated the leases.

On July 12, a division bench of the high court refused to hear Go First's plea against the order that allowed lessors to inspect 30 aircraft at regular intervals.

It also upheld the single's judge's order restraining the Resolution Professional of Go First from removing, replacing, or taking out any part of the leased aircraft without the lessors’ permission. The division bench, however, permitted Go First to continue maintaining the aircraft.

On July 5, a single-judge bench of the high court allowed the lessors to inspect and carry out maintenance work on their 30 leased aircraft twice a month.

GoAir stopped flying on May 3, blaming its woes on Pratt and Whitney, saying engine failures led to increase in costs. The American engine manufacturer has denied the charge.

A week later, it filed a plea in NCLT for voluntary insolvency resolution process, granting it bankruptcy protection, barring lessors from repossessing their aircraft.