NEW DELHI: In a big blow to aircraft lessors who are seeking to repossess aircraft leased to the beleaguered Go First, the National Company Law Appellate Tribunal (NCLAT) on Monday upheld insolvency proceedings against the airline.
With this, Go First’s aircraft lessors such as GY Aviation Lease, SFV Aircraft Holdings and SMBC Aviation Capital will, for the time being, will not be able to able to get hold of their planes. So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First’s 45 planes. Go First stopped flying on May 3 and for now it is not clear as when they would restart operations.
A two-member NCLAT bench directed aircraft lessors and the Interim Resolution Professional (IRP) of the Wadia group airline to approach the National Company Law Tribunal (NCLT) regarding the claim of possession and other respective claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency process.
Disposing of their pleas through a 40-page-long common order, the NCLAT said lessors are at “liberty to file” appropriate application before NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with “appropriate pleadings and material” regarding their claims. However, it also added that NCLT while considering the said application “shall not be influenced by any observations made in this order”.
“The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with law,” it said.