Go First RP to contest HC order allowing lessors to inspect, carry out maintenance of aircraft on July 5

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

The Resolution Professional of Go First, formerly known as GoAir, plans to contest the order issued by the Delhi High Court. The order granted permission to lessors to carry out inspections and maintenance work on 30 aircraft and their components at regular intervals.

The Delhi High Court, on July 5, directed the Director General of Civil Aviation (DGCA) and the airports where the Go First aircraft are parked to allow the lessors access to their respective aircraft within the next three days. The court emphasized that the resolution professional is not required to take control of the aircraft, issuing an interim order in favor of Go First’s lessors.

By contesting the order, the Resolution Professional intends to challenge the ruling of the Delhi High Court. The resolution professional’s decision suggests disagreement with the court’s decision to allow the lessors to conduct inspections and maintenance work on the aircraft. This legal development adds complexity to the ongoing situation involving the grounded airline, Go First, and its lessors.

The order issued by the Delhi High Court acknowledged that the lessors have approached the court to address their grievances against the DGCA’s failure to deregister their aircraft. Deregistration is considered an administrative action against a government body.

In addition to ruling in favor of the lessors, the High Court also stated that the National Company Law Tribunal (NCLT) does not possess the authority to review judicial actions such as the de-registration of aircraft. This implies that the NCLT, which is overseeing the insolvency proceedings of Go First, cannot intervene in matters related to the de-registration of the aircraft.

Furthermore, the court highlighted that if a lease agreement is terminated, Go First does not have the right to continue operating the aircraft. This indicates that the termination of the lease would prevent Go First from utilizing the aircraft for flight operations.

Overall, the observations made by the Delhi High Court signify the legal complexities surrounding the dispute between the lessors, the DGCA, and the grounded airline Go First. The court’s ruling supports the lessors’ right to access their aircraft, while also clarifying the limitations of the NCLT in reviewing certain judicial actions.

The judgment issued by the Delhi High Court recognizes that Go First (formerly GoAir) had defaulted on its rental payment obligations to the lessors as stipulated in the lease agreements. The provisions of the lease agreements also acknowledge that the lessors possess the authority to seek deregistration of the aircraft by filing an application with the DGCA, without requiring the consent of Go First.

Amidst the insolvency resolution proceedings faced by Go First, aircraft lessors approached the Delhi High Court on May 16 seeking directives from the authorities to release the aircraft leased to the airline. This indicates that the lessors were seeking legal intervention to address their concerns regarding the leased planes, which were entangled in the crisis faced by the airline.

The move by the lessors to approach the court demonstrates their efforts to protect their interests and seek appropriate action amidst the insolvency resolution proceedings. Their request for the release of the leased planes reflects the need to safeguard their assets and potentially explore alternative options for their utilization.

The involvement of the aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2 Ltd, EOS Aviation, and SMBC Aviation, in seeking court directions regarding the release of leased planes underscores the complex legal situation faced by Go First (formerly GoAir) during the insolvency resolution process. This situation reflects the efforts made by stakeholders to protect their respective interests and assets.

The filing of petitions by the lessors is an indication of their concerns and the need to address the status of the leased planes, which were caught up in the airline’s financial crisis. By approaching the court, the lessors sought legal intervention to safeguard their assets and ensure a fair resolution in the insolvency proceedings.

On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the order issued by the National Company Law Tribunal (NCLT) admitting Go First’s plea for insolvency. This indicates that the NCLAT affirmed the decision of the NCLT to initiate the insolvency resolution process for Go First. The confirmation by the NCLAT solidifies the commencement of the resolution process and signifies the recognition of Go First’s financial distress.

With the insolvency resolution process officially underway, the appointment of an Insolvency Resolution Professional (IRP) is a crucial step taken by the NCLT. The IRP assumes responsibility for overseeing and managing the resolution process, ensuring that it proceeds in a fair and transparent manner.

Furthermore, the suspension of the board of directors and the imposition of a moratorium on Go First’s financial obligations during the resolution process are significant measures aimed at preserving the company’s assets and maintaining stability during the proceedings.

The involvement of multiple stakeholders, including the lessors, the NCLAT, and the NCLT, highlights the complexity of the legal situation surrounding Go First’s insolvency. The collective efforts and legal actions taken by these parties reflect their commitment to protecting their respective interests and navigating the challenges presented by the insolvency resolution process.

In summary, the involvement of the lessors in seeking court directions, along with the confirmation of the insolvency resolution process by the NCLAT, showcases the intricacies of Go First’s financial situation. The collective actions of stakeholders demonstrate their determination to safeguard their assets and find a fair resolution in the insolvency proceedings.

Earlier, on May 10, the principal bench of the NCLT in Delhi accepted Go First’s voluntary plea to initiate the insolvency resolution process. As part of the proceedings, the tribunal appointed an Insolvency Resolution Professional (IRP) to oversee the resolution process. Additionally, the board of directors of Go First was suspended, and a moratorium was imposed on the airline’s financial obligations. This meant that the airline’s financial activities were restricted during the insolvency resolution process.

The acceptance of Go First’s voluntary plea for insolvency by the NCLT and subsequent confirmation of this decision by the NCLAT marked the initiation of the insolvency resolution process for the airline. The appointment of an IRP and the imposition of a moratorium were crucial steps taken by the NCLT to manage and address the financial situation of Go First.