The National Company Law Tribunal (NCLT) on July 6 deferred the hearing of applications by aircraft and engine lessors to August 4.
The tribunal is likely to consider whether an interim order should be granted, directing Go First not to operate the aircrafts leased out to them. The parties have been asked to file the requisite pleadings so that the case could be heard by the tribunal at length.
At the hearing today, the lessors apprised the tribunal about Delhi High Court's order observing that Go First cannot use the aircrafts when the lease is terminated and urged the tribunal to pass a similar order. The lessors argued that the RP is not maintaining the aircrafts as per his undertaking on the last date of hearing.
Appearing for the Resolution Professional (RP), senior advocate Ramji Srinivasan argued that they are contesting the Delhi High Court's order before a division bench and urged the tribunal not to pass any interim orders. He apprised the NCLT of the recent developments with the Committee of Creditors (CoC) and told the NCLT that active steps are being taken to ensure that the airline commences operations again. He further argued that the Singapore International Arbitration Centre (SIAC) has recently reaffirmed its earlier order directing engine maker Pratt and Whitney to supply 5 engines every month.
He further argued that any order from the NCLT now, may have repercussions on Go First's insolvency proceedings going forward. Srinivasan submitted that the RP has filed responses to the applications of the lessor and asked the tribunal to direct the lessors to file rejoinders to the same.
The tribunal thus deferred the hearing of these applications to August 4.
On June 15, the NCLT asked Go First's newly appointed Resolution Professional (RP) to file responses to pleas by lessors.
The tribunal also directed the RP to maintain the assets of the lessors. The applications are likely to be heard by the tribunal on July 6. Earlier in the hearing, the NCLT approved the appointment of Shailendra Ajmera as the new RP of the crisis-hit airline.
Nine lessors have moved the tribunal, seeking possession of their aircraft and engines as they contended that they had terminated their leases with Go First before the moratorium kicked in on May 10.
Earlier, lessors such as Jackson Square Aviation, Engine Lease Finance B.V, and BOC Aviation had moved similar applications and on June 5, NCLT had directed the IRP Abilash Lal to file responses. However, since Lal has now been replaced, the tribunal had granted the newly appointed RP some time to file his response.
These applications by lessors have been filed pursuant to the National Company Law Appellate Tribunal's (NCLAT) May 22 order, which upheld Go First's insolvency and directed the lessors to file an appropriate application at the NCLT to ascertain the status of leases terminated prior to the airline being admitted to insolvency.
On May 10, the principal bench of NCLT at Delhi admitted Go First's voluntary plea to initiate an insolvency resolution process.
The tribunal appointed an IRP while suspending the board and putting a moratorium on the debt-ridden airline's financial obligations.
Founded by billionaire Nusli Wadia, Go First, formerly known as GoAir, filed for bankruptcy on May 2, blaming US engine maker Pratt & Whitney for grounding half of its fleet due to faulty engines.
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