Go First case: NCLAT permits another lessor to inspect leased aircraft

Go First

The National Company Law Appellate Tribunal (NCLAT) permitted Go First lessor Bluesky 19 Leasing Company Ltd to inspect their aircraft.

The NCLAT disposed the plea with the direction permitting them to inspect the aircraft.

Bluesky is the third lessor to have secured this order from the NCLAT since August 2023, the first two being Engine Lease Finance BV and Jakson Square Aviation.

The lessors had challenged National Company Law Tribunal's (NCLT) July 26 order refusing 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.

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.