Go First: Delhi HC defers contempt proceedings as RP, lessors deliberate on aircraft maintenance

Delhi HC to hear Go First case on January 3

The Delhi High Court on December 20 deferred to January 3 the hearing of the contempt plea filed by the lessor of the grounded airline Go First after the court was informed that the parties were deliberating on engaging a third-party agency for aircraft maintenance.

The lawyer for the lessor asked the court to adjourn the case as talks on engaging a third-party agency for maintenance and collation of aircraft-related documents are underway. The lawyer for the RP told the court that the agency is likely to cover the maintenance of all the 54 leased aircraft currently with Go First.

Earlier this month, the RP in an affidavit stated that none of the 2278 employees on the airline's rolls are reporting to work, as a result of which they are unable to maintain the aircraft. "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 affidavit said.

DAE (SY22) 13 Ireland Designated Activity Company, an aircraft lessor to the grounded airline Go First, filed a contempt petition in the Delhi High Court, alleging that the carrier's resolution professional (RP) had wilfully refused to comply with the court's orders.

"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 read.

Delhi High Court litigation

The lessors moved a plea in the Delhi HC against the DGCA, requesting the court to direct the authority to deregister their aircraft. They argued that the authority should deregister the aircraft if demanded by lessors.

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 insolvency resolution professional (RP) appointed under the IBC 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.