Big win for Go First lessors

The Delhi high court on Friday directed the civil aviation regulator to deregister planes leased to Go First within five working days, giving respite to the lessors.

This means that the airline will have to give back all 54 aircraft to the lessors if its resolution professional (RP) does not challenge the order or ask for a stay.

Justice Tara Vitasta Ganju also refused the request of the RP, represented by advocate Diwakar Maheshwari, to keep the operation of the order in abeyance for a week to enable them to file an appeal before the division Bench of the court.

“The five days will start from Monday, so you have time to approach the court,” Justice Ganju said.

Disposing of a batch of pleas moved by the lessors, Justice Ganju also set aside the communication letters issued by the Director General of Civil Aviation (DGCA) declining to process new registration applications of the lessors.

The court ordered that all maintenance tasks with respect to the aircraft will be undertaken by the lessors and all their authorised representatives up to and until the time the aircraft are de-registered and exported, in pursuance of Rule 32A of the Aircraft Rules.

“The respondent DGCA and the respondent Airport Authority of India (AAI) shall assist the petitioner lessors and grant them access to the airports…” the court said.

The court also restrained the airline and its representatives from accessing or entering or in any manner operating or flying any of the aircraft.

The RP and Go First have also been restrained from removing, replacing, and taking out accessories, spare parts, documents, records, materials, etc from the aircraft.

The RP has to furnish details regarding the maintenance of the aircraft to the lessors.

The AAI will now have to communicate with the lessors regarding export of aircraft and airworthiness of the equipment.

Lessors who do not wish to export their aircraft can move the court to take appropriate steps.

“The respondent RP shall forthwith provide up to date information and documentation in relation to the aircraft and the petitioner lessors are permitted to export aircraft as per the Aircraft Act, Aircraft Rules and applicable laws,” the court said.

The airline may now ask for a stay of the orders, said a lawyer from the lessor side.

Go First lessors on October 5 last year had requested the high court for deregistration of the aircraft in light of the October 3 notification by the Ministry of Corporate Affairs (MCA) that exempted aircraft, engines, and airframes from a moratorium under the Insolvency and Bankruptcy Code (IBC), 2016.

The National Company Law Tribunal (NCLT) on April 8 this year gave another 60-day extension to Go First to complete its insolvency process, which was the third extension sought by Go First.

Sharjah-based aviation company Sky One and SpiceJet promoter Ajay Singh along with Busy Bee Airways, owned by Nishant Pitti of EaseMyTrip, are the two bidders for the airline.

“We have acknowledged the judgment issued by the Delhi high court on April 26, 2024.

"We will review the details of the order once we receive the official document.

"Following this review, we will evaluate our position and consider any necessary adjustments to our proposed offer for Go Air.

"Our commitment remains to proceed in a manner that respects the legal process and aligns with our strategic objectives,” Nishant Pitti said on X for Busy Bee.

Aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation, and SMBC Aviation filed a petition in May 2023 before the high court, seeking directions to release the planes leased to the insolvent airline.

Big win for lessors

2023

May 2: Go First files for voluntary insolvency

May 9: Lessors seek deregistration of 45 planes

May 10: NCLT admits Go First's petition; imposes moratorium

May 22: NCLAT upholds NCLT admission of Go to insolvency, lessors file a plea in HC seeking the release of aircraft

July 5: Delhi HC allows lessors to access aircraft, carry out maintenance, Go first appeals

September 1: Delhi HC raps Go First RP for not complying with an inspection order

October 3: MCA exempts all transactions and agreements related to aircraft and their engines from the moratorium

October 5: Go First lessors seek deregistration of aircraft after MCA notification

April 26, 2024: HC tells DGCA to deregister all aircraft of Go First