The Committee of Creditors (CoC) of grounded airline Go First moved applications in Delhi High Court to be made a party in writ petitions filed by the airline's lessors against the Director General of Civil Aviation (DGCA).
The applications came up for hearing on July 21 before Justice Subramamonium Prasad but since the case was already heard by Justice Tara Vitasta Ganju, the former passed an order directing the registry to place it before the Chief Justice of the High Court, to get instructions on the same.
Advocate Anjana Gosain, who appeared on behalf of the DGCA, told the court that they have moved an application that is likely to come up for hearing on July 24. The batch of cases are now likely to come up for hearing on July 24.
Appeal rejected
A CoC is formed once a company is admitted to insolvency. It is a body of financial creditors that represents the interest of stakeholders. The voting percentage in the committee is proportional to the amount a financial institution has lent to the company in insolvency.
On July 12, a two judge bench of the Delhi High Court refused to entertain an appeal by Go First's Resolution Professional (RP) challenging a previous order that had allowed lessors to conduct inspections of 30 aircraft and their parts at regular intervals. The court upheld the decision, granting permission to the lessors to carry out inspections regularly.
The court, however, permitted Go First to continue maintaining the aircrafts.
On July 5, a single-judge bench of the Delhi High Court granted permission to the lessors to inspect and perform maintenance work on their 30 leased aircraft and their parts twice a month. The order also prohibited Go First's resolution professionals and employees from removing, replacing, or taking out any part or component of the leased aircraft without the explicit permission of the lessors.
Order upheld
The aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation, and SMBC Aviation, filed a writ with the Delhi High Court seeking instructions to release the planes leased to Go First, which is currently facing financial distress.
On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the National Company Law Tribunal's (NCLT) order to admit 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. As a result, the tribunal appointed an Insolvency Resolution Professional (IRP), suspended the board, and imposed a moratorium on the airline's financial obligations.
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