Go First RP to contest HC order allowing lessors to inspect, carry out maintenance of aircraft

While passing an interim order in favour of the lessors, the High Court also said that NCLT does not have the power to review judicial actions such as the de-registration of aircraft.

The court observed that Go First does not have the right to fly the aircraft if a lease is terminated.

The judgment notes that Go First was in default of its rental payment obligations to the lessors under the lease agreements and the provisions of the agreement contemplate that the lessor had the authority to apply for deregistration of the aircraft by filing an application with the DGCA, thus observing that the lessors indeed had the authority to seek deregistration of the aircraft without the consent of Go First.

As Go First underwent insolvency resolution proceedings, aircraft lessors moved the Delhi HC on May 16 seeking directions to the authorities to release the plane leased to the crisis-hit airline.

Aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation and SMBC Aviation had filed their petitions.

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.