Appeal Filed Against Delhi High Court Order Allowing Aircraft Lessors Access to Go First's Planes during Insolvency Proceedings
Following the recent decision by the Delhi High Court permitting aircraft lessors to conduct inspections and maintenance on leased planes belonging to Go First Airlines, an appeal has been lodged by the airline's Resolution Professional (RP) to challenge the ruling.
In a bid to expedite the process, Senior Advocate Sandeep Sethi requested an urgent listing of the case before a division bench, headed by Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula. The Court has scheduled a hearing for Monday.
On July 5, Justice Tara Vitasta Ganju had issued an interim order granting aircraft lessors access to the planes for maintenance purposes. The order also prohibited Go First Airlines and the Resolution Professional from removing any parts or documents from the 30 specified aircraft.
The ruling stemmed from a plea filed by several lessors seeking the de-registration of their aircraft currently under Go First's possession. Parties such as 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 those requesting relief.
The lessors argued that they had terminated their lease agreements with Go First prior to the airline's insolvency application due to repeated defaults. They contended that the Insolvency and Bankruptcy Code (IBC) lacked relevant provisions for addressing de-registration cases, thus asserting that even bankruptcy tribunals were not empowered to hear their pleas.
The matter originated when Go First filed for corporate insolvency resolution under the IBC at the National Company Law Tribunal (NCLT) in Delhi. On May 10, the NCLT Delhi admitted the plea and imposed a moratorium on the company. Additionally, the suspended board of directors was instructed 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) in a ruling issued on May 22.
TAGS: Appeal Delhi High Court aircraft lessors inspection maintenance Go First Airlines Resolution Professional order urgent listing division bench Chief Justice Justice hearing interim order de-registration Director General of Civil Aviation Insolvency and Bankruptcy Code bankruptcy tribunals lease agreement defaults National Company Law Tribunal NCLT corporate insolvency resolution process moratorium National Company Law Appellate Tribunal NCLAT.
