NEW DELHI: The Delhi High Court on Wednesday allowed lessors of crisis-stricken airline Go First to carry out inspection and interim maintenance works of their aircraft, twice a month. The high court was hearing lessors’ petitions for deregistration of the planes by the Directorate General of Civil Aviation (DGCA), in order to get them back. Justice Tara Vitasta Ganju said, “There can be no denial of the fact that the aircraft of the petitioners are extremely valuable equipment which requires regular maintenance.”
The interim permission for inspection of aircraft will be applicable until the final disposal of the group of pleas while the respondents including Go First, or their representative as appointed by the NCLT were restrained by the court.
The court held that the respondents (airline and or its representative) are “restrained from removing, replacing, taking out any part or component etc or any relevant operational or other manual records, documentation from any of 30 aircraft except with prior written approval of lessor of such aircraft.”
The petitioners in the case include Pembroke Aircraft Leasing 11, Eos Aviation 12 (Ireland), DAE SY 13 Ireland, SFV Aircraft Holdings Ire 9 DAC Limited, Accipiter Investments Aircraft 2, ACG Aircraft Leasing Ireland Limited, GY Aviation Lease 1722 Co Limited, and SMBC Aviation Capital.
Those who leased out their planes to Go First approached the court after the crisis-hit airline moved the National Company Law Tribunal (NCLT), Delhi, to initiate a corporate insolvency resolution process. The lessors before the Delhi High court were arguing that the airline has no rights over planes as the leases have been terminated. Go First stopped operations from May 3, and has now suspended flights till at least July 10.
As per the airline’s plea before NCLT, it initiated emergency arbitration proceedings against Pratt & Whitney in April 2020 and already paid Rs 19,980 crore to its creditors, out of which Rs 5,400 crore was paid to the lessors in the last two years towards the lease rent and maintenance reserve despite 40% to 50% of the fleet not operational. The airline also claimed it has exhausted all financial resources.
Permission applicable until disposal of pleas
Interim permission for inspection of aircraft will be applicable until the final disposal of the group of pleas while the respondents including Go First, or their representative as appointed by the NCLT were restrained by the court. Lessors approached the court after the airline moved NCLT, Delhi, to initiate a corporate insolvency resolution process