Supreme Court Dismisses Go First Airlines' Plea Against Delhi High Court Ruling on Aircraft Lessors' Access
The Supreme Court, in a recent development, has rejected Go First Airlines' appeal against a Delhi High Court decision allowing aircraft lessors access to their leased planes. The Division Bench, comprising Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra, emphasized that Go First had already presented its case before a single judge of the High Court. Consequently, the apex court saw no grounds to halt the ongoing proceedings and urged the petitioners to address jurisdictional matters before the single judge.
The focal point of the case lies in a single-judge's interim order issued on July 5, which granted aircraft lessors access to the planes they had leased to Go First Airlines. Additionally, the lessors were permitted to conduct maintenance work on the aircraft. Go First contested this order before a Division Bench of the High Court, but the Bench declined to intervene, directing the single judge to expedite the decision-making process.
The Division Bench adjusted one directive to allow Go First to handle all maintenance tasks for the aircraft, including engines and other components. Subsequently, Go First escalated the matter to the Supreme Court.
The dispute originated when several aircraft lessors approached the High Court, asserting that their applications for aircraft de-registration were dismissed by the Directorate General of Civil Aviation (DGCA). Their argument centered on the lack of relevant provisions within the Insolvency and Bankruptcy Code (IBC) to address de-registration cases, making even bankruptcy tribunals ineligible to hear their pleas.
This legal tussle unfolded after Go First sought corporate insolvency resolution under the IBC, leading to the National Company Law Tribunal (NCLT) in Delhi admitting the plea and implementing a moratorium on May 10. The NCLT also directed the suspended board of directors to cooperate with the Interim Resolution Professional to prevent layoffs. The NCLT's decision was subsequently upheld by the National Company Law Appellate Tribunal (NCLAT) on May 22.
The Supreme Court's recent dismissal underscores the ongoing legal intricacies surrounding aircraft lessors' access and the broader implications for the aviation industry.
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