Go First case: Very clear that RP is unable to maintain aircrafts, Delhi HC notes

Go First RP gets a warning

The Delhi High Court on March 1 observed that it is apparent from the records that the airline's Resolution Professional (RP) is unable to maintain the aircraft.

Justice Tara Vitasta Ganju also noted that the RP must tell the court on March 6 if he is willing to hand over the maintenance of the aircraft to the lessors or a third-party agency. The court further told the RP that it may issue him notice in the contempt petition if a consensus is not reached on the issue.

The above transpired when the court was hearing a contempt plea by the airline's lessor alleging that the carrier's RP had wilfully refused to comply with the court's orders on maintenance of their grounded aircraft.  "The RP's wilful refusal to grant the petitioner access to its aircraft records/documents is in clear and deliberate violation of the judgment dated October 12," the plea filed by DAE (SY22) 13 Ireland Designated Activity Company read.

In response to the contempt plea, the RP had said that none of the 2278 employees on the airline's rolls are reporting to work. The affidavit filed by the RP said "As of the insolvency commencement date, the number of employees on the rolls of Go First stood at 4,621. However, as of October 10, approximately 2,278 employees remain on the rolls of the Company, out of which none are at present reporting to work." The RP also contended that with no revenue being generated by the airline, they also have financial constraints. However, the RP had offered to engage a third-party agency to maintain the aircraft that are currently in possession of the airline.

These developments come a week after the airline received two bids for its revival. One from a consortium led by SpiceJet chief Ajay Singh and Nishant Pitti from Busy Bee Airways, and the second from Sharjah-based Sky One.

Delhi High Court litigation

Go First was admitted insolvency resolution process in May 2023, after it filed a voluntary insolvency plea. Shortly thereafter, the lessors of the airline's 54 aircrafts moved the Delhi HC against the DGCA, asking it to direct the authority to deregister their aircrafts.

On July 5, the High Court, in an interim order, permitted the lessors to inspect and perform the maintenance work. However, a division bench of the Delhi High Court on July 12 modified the order to the extent that the lessors could only inspect the aircraft while the RP could carry out maintenance. The Supreme Court upheld the order of the Delhi High Court.

On October 12, the High Court permitted the lessors of the grounded airline to engage security personnel to monitor their aircraft, engine, and other parts. “A review of the documents and photographs filed by the Petitioners/Lessors show the evident cannibalisation of the Aircraft,” the high court order said