The National Company Law Tribunal (NCLT) on July 26 refused to restrain Go First from using leased aircraft for its operations, noting that those aircraft are essential to keep Go First as a going concern company.
According to the tribunal's order "the DGCA has not
deregistered the aircraft, which means that they are available to Go First for use to resume operations. Therefore, as long as the aircrafts/engines are registered, they can be used for operating or flying to keep Go First
as a going concern, however, within the safeguards/safety norms prescribed by the regulators."
The NCLT also dismissed the plea by lessors to inspect their aircraft and engine and held that they have in their previous order from June 15 already directed the Resolution Professional (RP) to maintain the same. The tribunal has granted relief to the lessors only to the extent of protection and maintenance of the aircraft/engines by the RP.
It is to be noted that the lessors had sought some interim orders from the tribunal, till their applications are decided. The tribunal will on August 4 hear applications by the lessor to exempt them from moratorium as they had terminated lease agreements beforehand. The Delhi High Court will hear applications by lessors against DGCA to deregister their aircraft on August 3.
NCLT has further held that Delhi HC's July 5 order is an interim order passed in its writ jurisdiction and no law has been laid down, however lessors have filed applications in the insolvency proceedings under the IBC and hence they need not consider what has been held by the High Court.
The order was passed in applications filed by lessors such as Bluesky 31 leasing Co. Ltd, Bluesky 19 leasing Co. Ltd, Jackson Square Aviation Ireland Limited, SMBC Afro Engine Lease B, Engine Lease Finance B.V and BOC Aviation (Ireland) Limited.
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 aircraft.
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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