Go First case: Lessor alleges aircraft neglect amid unpaid staff

Go First, aircraft lessor

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.

The plea, which Moneycontrol has reviewed, further alleges that the lessor came to know that one of the aircraft was not being maintained because the staff of Go First had not been paid salaries in August 2023. The lessor alleges that "the surface of the top fuselage was completely dirty and had a greenish deposit on it.

Corrosion was observed in various places on the aircraft, including the brakes. The blankings/protective covers were apparently removed before the lessor's inspectors arrived as engine runs were being carried out."

According to the plea, filed through lawyers Amit Pai and Bhavna Duhoon, the lessor inspected the aircraft on three occasions in July and August 2023 and noticed that the aircraft was in "a significantly worse condition since the last inspection."

As a result of this, the lessor has asked the court for directions to permit them to pay for the maintenance of their two aircraft or engage a third party to carry out maintenance, without prejudice to their rights.

Access to documents denied:

The lessor, 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.

The plea further notes that the inspection of the aircraft would necessarily include the inspection of records/documents of the aircraft as per the lease agreement. Furthermore, the term “Aircraft” is defined to mean the Airframe together with all aircraft Documents. Thus, an inspection is not complete without physically inspecting the aircraft and reviewing the documents as well.

DAE has alleged that despite repeated emails and follow-ups with the RPs and representatives, they have refused to provide them access to the aircraft's records. The RP has not only unlawfully refused such a request but has also provided no reasons for such refusal.

Thus, the company has asked the court to direct the RP to provide them with full records and to maintain the aircraft properly.

Third such application:

DAE is the third aircraft lessor to approach the court with such an application. Other lessors, such as BOC Aviation Ireland and ACG Aircraft Leasing, have also filed similar applications. They have sought the court's permission to maintain their aircraft.

HC hearing on September 13:

While the Delhi High Court has already issued a notice in ACG Aircraft's plea, it heard the pleas by BOC and DAE today. The High Court issued a notice in these petitions and asked the RP to respond to the same.

The court is likely to hear these petitions and pass an order on September 19.

Leasing have also filed similar applications. They have sought the court's permission to maintain their aircraft.

Case file:

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

Aircrafts lessors approached the Delhi High Court filing a writ petition against the Director General of Civil Aviation (DGCA) to deregister their aircrafts. 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 aircrafts while the RP could carry out maintenance.