Go First lessors not authorised to maintain aircraft: DGCA tells Delhi HC

Go First in Delhi HC

The Director General of Civil Aviation (DGCA) on July 10 informed the Delhi High Court that aircraft lessors of the bankrupt airline Go First were not allowed to carry out maintenance work on the grounded fleet because of compliance issues.

According to the regulator, Go First is the only entity authorised to maintain the aircraft as per their records. It also told the court that they may not be able to process Go First's revival plan if there was not enough clarity on who will maintain the aircraft as it is a key safety factor.

Appearing for the Resolution Professional (RP), senior advocate Neeraj Kishan Kaul argued that the order of the single-judge bench of the Delhi High Court restraining the RP and the employees of the company from removing, replacing any part or component of the leased aircraft will destroy the corporate resolution process and put a question mark on the company's revival plans.

Senior Advocate Ramji Srinivasan appearing for the RP took the court through various steps taken by them to ensure the revival of the company. He told the court that the company was ready to commence operations by the middle of July, subject to DGCA's consent as there are 26 operational aircraft with the airline.

He urged the court to stay the order of the single-judge bench in the interest of the company's revival. Srinivasan argued that the question of whether or not a moratorium is applicable to these lessors is already pending before the court.

The court has deferred the hearing in the case to July 11, where the lessors are expected to respond to the arguments of the RP and the DGCA.

On July 5, a single-judge bench of the Delhi High Court permitted the lessors of the airline to inspect and carry out maintenance work of their 30 aircraft and their parts twice a month.

The court directed the aviation watchdog and the airports where they are parked to permit the lessors to access their aircraft in the next three days.

Justice Tara Vitasta Ganju, who passed the interim order, also restrained Go First's resolution professionals and employees from removing, replacing and taking out any part or component of the leased aircraft without the express permission of the lessors.

The judge held that the aircraft are expensive and complex machinery and require regular maintenance.

Aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation, and SMBC Aviation, filed a writ with the Delhi High Court, seeking directions to release the planes leased to the financially distressed airline.

On May 22, the NCLAT upheld the NCLT's order admitting 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. The tribunal appointed an IRP, suspended the board, and imposed a moratorium on the airline's financial obligations.