Go First insolvency: Appeal filed against single-judge order allowing aircraft lessors access to planes
Days after the Delhi High Court allowed aircraft lessors to carry out inspection and maintenance of aircrafts on lease with Go First Airlines, an appeal has been filed by the airlines' Resolution Professional (RP) challenging the order.
Senior Advocate Sandeep Sethi mentioned the matter this morning for urgent listing before a division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula.
The Court said it will take up the case on Monday.
In an order pronounced on July 5, Justice Tara Vitasta Ganju had allowed aircraft lessors access to the planes to carry out maintenance work. The Court had also restrained the Go First Airlines as well as the Resolution Professional from removing any parts or documents from the 30 planes in question.
Justice Ganju passed the interim order while dealing with a plea filed by several lessors seeking the de-registration of their aircrafts which are with Go First.
Pembroke Aircraft Leasing 11, SMBC Aviation Capital, Accipiter Investments Aircraft 2, Eos Aviation 12 (Ireland), DAE SY 13 Ireland, SFV Aircraft Holdings Ire 9 DAC Limited, ACG Aircraft leasing Ireland Limited and GY Aviation Lease 1722 Co Limited were among the parties seeking relief.
They pleaded that they had filed applications for the de-registration of these aircrafts, but the same were rejected by the Director General of Civil Aviation (DGCA).
It was argued that the Insolvency and Bankruptcy Code (IBC) did not have relevant provisions for dealing with cases pertaining to de-registration, and hence, even bankruptcy tribunals were not competent to hear their pleas.
Their main argument was that they had terminated their lease agreement with the airline prior to its application for insolvency. The lessors claimed that the termination had been initiated because there had been multiple defaults by Go First.
The matter arose after Go First moved the National Company Law Tribunal (NCLT) in Delhi to initiate the corporate insolvency resolution process under the IBC.
The NCLT Delhi had, on May 10, admitted the plea and declared a moratorium for the company. It also directed the company's suspended board of directors to co-operate with the Interim Resolution Professional to ensure there are no layoffs.
The NCLT's decision was upheld by the National Company Law Appellate Tribunal (NCLAT) in an order pronounced on May 22.
