TBM Staff - Mumbai Grounded carrier Go First is undergoing insolvency resolution proceedings, and its lessors have approached the Delhi High Court seeking directions to release the leased aircraft. The lessors claimed that Go First was in default of its rental payment obligations under the lease agreements.
On July 5, the Delhi High Court passed an interim order in favour of the lessors. The court ordered the Director General of Civil Aviation (DGCA) and the airports where the Go First aircraft are parked to allow the lessors to access their aircraft for inspections and maintenance work at regular intervals. The court also observed that the resolution professional appointed during the insolvency resolution proceedings is not required to take control of the aircraft.
In response to the Delhi High Court’s order, the Go First’s Resolution Professional (RP) is planning to contest the decision
Furthermore, the court noted that the lessors had the authority to seek deregistration of the aircraft without the consent of Go First. The lessors had approached the court against the DGCA for failing to deregister their aircraft, which the court considered as an administrative action against a government body. The court also stated that the National Company Law Tribunal (NCLT), where Go First’s insolvency resolution process was initiated, does not have the power to review judicial actions such as the deregistration of aircraft.
It is mentioned that on May 10, the NCLT accepted Go First’s voluntary plea to initiate an insolvency resolution process. The tribunal appointed an Insolvency Resolution Professional (IRP), suspended the board, and imposed a moratorium on the airline’s financial obligations. Subsequently, on May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the NCLT’s order admitting Go First’s plea for insolvency.
