New Delhi,(Asian independent) The Delhi High Court on Wednesday allowed cash-strapped Go First airline to carry out maintenance of its on-lease aircraft and permitted the lessors to inspect the planes at regular intervals as per a single-judge bench’s order.
A division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula was hearing appeals filed on July 7 by the resolution professional (RP) – appointed under the insolvency law to manage the airline – challenging an order passed by single judge bench of Justice Tara Vitasta Ganju in favour of the lessors.
Justice Ganju had, on July 5, permitted the aircraft lessors of Go First airline to inspect their aircraft at least twice a month and carry out maintenance after the lessors filed a bunch of applications in the main petitions seeking to de-register their aircraft currently on lease with Go First, to avoid any further losses.
During the hearing, the bench noted that according to the DGCA, the grant of required approvals to Go First to resume flying operations will take a minimum of 15 days, and so it will be in the interest of justice that the matter is finally decided by the single judge herself.
“Single judge is requested to decide the matter on an early date. It shall be open to the parties to file an application for preponing the date of hearing (of August 3) and the single judge is requested to decide the matter on an early date,” the court said.
“In the meantime, the appellant Go Air through the RP shall be permitted to carry out the maintenance of the aircraft parked at various airports. The writ petitioners shall be free to inspect the aircraft (with due permission and as per law on a monthly basis),” it added.
The bench said that it has not expressed any opinion on the merit of the dispute between the parties. It, however, clarified that the aviation watchdog Directorate General of Civil Aviation (DGCA) shall be free to act on the plan submitted by Go First for resuming its operations.
Stating that the National Company Law Tribunal (NCLT) and the single judge are free to go ahead with the hearings on the issues before them, the court asked Go First and the DGCA to file their response to the petitions by the lessors pending before the single judge.
The appellant RP went against the single judge’s order as, according to him, it was contrary to the law and would adversely impact its efforts to revive the operations of Go First.
Lawyer for RP, senior advocate Neeraj Kishan Kaul, also said that the issues raised by the lessors ought to be heard and decided by the tribunal. Senior advocate Rajiv Nayar, appearing for one of the lessors, said the lease agreement between the parties for the aircraft has been duly terminated and the lessor cannot be forced to continue with it.
On the other hand, Anjana Gosain, appearing for the DGCA, submitted that it has replied to the resumption plan submitted by the airline on Wednesday itself and is waiting for RP’s response. Post which, Go First will apply for routes, etc and the approval process will take about 10 days, she further said.
On May 26, aircraft lessors – Pembroke Aircraft Leasing 11 Ltd, SMBC Aviation Capital Ltd, Accipiter Investments Aircraft 2 Ltd and EOS Aviation 12 (Ireland) Ltd, SFV Aircraft Holdings IRE 9 DAC Ltd, ACG Aircraft Leasing Ireland Ltd and DAE SY 22 13 Ireland Designated Activity Company – had moved the high court seeking deregistration of their planes by the DGCA to take them back from the airline.
On July 5, Justice Ganju while allowing the lessors to inspect and carry out maintenance of their aircraft, had acknowledged how valuable and sophisticated equipment of the lessors’ aircraft are, and required maintenance for their preservation. The airline, its representatives, and the NCLT-appointed IRP were restricted by the court from removing, replacing or taking out any part or components, or records of the 30 aircraft without taking prior written approval from lessor of the particular aeroplane.
Asking the respondents in the case, DGCA and IRP, to file their responses to the petitions within three weeks’ time, Justice Ganju had also asked the aviation regulator to allow the lessors, their employees and agents to access the airport, where their aircraft are currently parked, and to inspect them within three days.
The low-cost airline first stopped flying on May 3 and is undergoing voluntary insolvency resolution proceedings before the NCLT. On lessors’ petitions seeking deregistration of their aircraft, the DGCA had told the court that it was due to a technical glitch on its portal that the applications of several aircraft lessors were shown as “rejected”. The DGCA had said it was not processing such requests after a moratorium on financial obligations and transfer of assets of the crisis-hit airline post insolvency resolution proceedings.
