The National Company Law Appellate Tribunal (NCLAT) on August 31 disposed an appeal by Jackson Square Aviation after permitting the aircraft lessor to inspect the aircraft it had leased to the grounded airline Go First.
Jackson is the second lessor to approach the appellate tribunal after Engine Lease Finance BV. On August 18, the NCLAT modified NCLT's July 26 order to permit the engine lessor to carry out inspection of their four engines leased to Go First.
On July 26, the NCLT refused to restrain Go First from using leased aircraft for its operations, noting that those aircraft are essential to keep Go First as a going concern company.
According to the tribunal's order, "the DGCA has not deregistered the aircraft, which means that they are available to Go First for use to resume operations. Therefore, as long as the aircraft/engines are registered, they can be used for operating or flying to keep Go First as a going concern, however, within the safeguards/safety norms prescribed by the regulators."
The lessors are contending at NCLT that they should be exempt from moratorium as they had terminated their leases with Go First before the airline could be admitted to insolvency. NCLT passed the July 26 order in applications by lessors asking the tribunal to restrain the airline from using their aircrafts till their plea is disposed. However, the tribunal refused to pass any such order.
Go First insolvency:
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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