The resolution professional (RP) of Go First, formerly known as GoAir, expressed concerns in the Delhi High Court on Monday over the potential disruptions that may arise from allowing lessors to inspect the airline’s aircraft. The division bench of the Delhi High Court has postponed the hearing on the matter to Tuesday. This comes in the midst of a legal battle over an interim order that permitted lessors to carry out maintenance work and inspections on Go First’s 30 aircraft within the next three days.
In a single-judge bench ruling on July 5, the Delhi High Court had granted permission to the lessors to conduct maintenance tasks on the engines and components of Go First’s aircraft twice a month until the disposal of the writ petitions. The court also prohibited Go First and its agents from removing any components or operational and manual documents from any of the 30 aircraft. However, the RP representing Go First argued that this interim order disregarded a proposed resolution that had received 100% approval from the Committee of Creditors (CoC) and had been submitted to the Directorate General of Civil Aviation (DGCA).
The RP’s counsel contended that the matter was under the jurisdiction of the National Company Law Tribunal (NCLT), raising doubts about the civil court’s authority to rule on the writ petition. The counsel emphasized that the proposed resolution, approved by the CoC, should have been considered as it directly addressed the concerns of all stakeholders involved.
Regarding the aircraft themselves, the court was informed that out of Go First’s fleet of 56 aircraft, 26 had already undergone inspection by the DGCA and were deemed fit to fly. The remaining aircraft are awaiting engine delivery from Pratt and Whitney. It was revealed that emergency arbitration proceedings had been initiated in Singapore against Pratt and Whitney to obtain new engines. The DGCA informed the court that, according to current regulations, only Go First has the authorization to carry out maintenance work, and lessors are not permitted to do so.
On the other hand, lessors, including 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 Ltd, and GY Aviation Lease 1722 Co. Ltd, approached the high court seeking deregistration of the leased aircraft.
The NCLT’s principal bench in Delhi had previously accepted Go First’s voluntary plea for an insolvency resolution process on May 10. In response, the tribunal appointed an insolvency resolution professional (IRP), suspended the board, and imposed a moratorium on the airline’s financial obligations.
As the legal battle continues, the Delhi High Court is set to further examine the matter and weigh the arguments presented by both parties. The resolution of this dispute will have significant implications for the future operations and financial stability of Go First and its stakeholders.
