The National Company Law Tribunal (NCLT) on September 1 asked the Resolution Professional (RP) of the grounded airline Go First to file a report on the maintenance of leased aircraft and engines.
NCLT's direction came after a lessor told the tribunal that some parts of their leased equipment had gone missing. According to the lessor, they conducted an inspection before the airline was admitted to insolvency and conducted another inspection recently, after which they found some parts missing. Thus the lessor told the tribunal that RP is not maintaining the aircraft and engines as per NCLT's earlier directions.
The lessor also argued that they could incur a huge loss if this is permitted to continue as the value of aircraft and engines run into millions of dollars.
Tribunal questions CoC's motive behind filing an impleadment plea
The NCLT questioned the motive of the Committee of Creditors (CoC) application to be permitted to make their submissions on pleas by lessors. According to NCLT, the RP is viewed as a representative of CoC's interests and it was curious that the CoC has filed an application to put forth their submissions.
Furthermore, the tribunal questioned the CoC as to what led to the situation wherein it had to file an application to make separate submissions. The lessors contended that the CoC and RP had filed this application to derail the final hearing of their pleas.
The tribunal, however, permitted the CoC to make submissions in the case without making them a party to the proceedings.
The case is now listed for a final hearing on September 12.
Plea by lessors
Engine and aircraft lessor to the grounded airline Go First has filed applications in NCLT seeking to be exempted from the moratorium on the ground that they had terminated the leases before the airline was admitted to insolvency.
The lessors had sought an interim order restraining the airline from operating leased aircraft. However, on July 26, the NCLT turned down a plea by seven of the lessors to restrain the airline from using the leased aircraft.
Go First filed for bankruptcy protection in May, blaming engine maker Pratt & Whitney for the grounding of half of its fleet and economic woes, a claim denied by the company.
The airline owes Rs 8,000 crore to a consortium of banks, which includes State Bank of India, Punjab National Bank, IDBI, Canara Bank and ICICI Bank.
On May 10, NCLT accepted its plea to initiate the insolvency resolution process. The tribunal appointed an insolvency resolution professional, suspended the board and imposed a moratorium on the airline's financial obligations.
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