Delhi HC Allows Lessors to Secure Idle Go First Aircraft

Delhi HC Allows Lessors to Secure Idle Go First Aircraft

VoM News Desk | October 13, 2023 | 12:03 AM IST | Breaking News, Courts & Law | Follow on Google News

Delhi HC Allows Lessors to Secure Idle Go First Aircraft

Delhi HC Allows Lessors to Secure Idle Go First Aircraft

The Delhi High Court has granted permission to the lessors of the crisis-hit airline Go First (formerly known as GoAir) to employ security personnel round-the-clock to safeguard their idle aircraft. This decision comes in response to multiple applications filed by various lessors who have sought the maintenance and protection of their aircraft. Additionally, the lessors have requested the deregistration of their planes by the Directorate General of Civil Aviation (DGCA) to repossess them from the airline. The court has ruled that DGCA, through the Bureau of Civil Aviation Security, must allow duly verified security personnel to monitor the aircraft.

In an interim order issued on July 5, the court had previously permitted the lessors to inspect their aircraft at least twice a month and conduct necessary maintenance. The court recognized the high value and sophistication of the lessors’ aircraft, emphasizing the need for maintenance to preserve these valuable assets. It also imposed restrictions on Go First and its representatives, as well as the Resolution Professional (RP) appointed by the National Company Law Tribunal (NCLT), preventing them from removing, replacing, or extracting any part, component, or records from the 30 aircraft without prior written approval from the respective lessor.

Furthermore, the court directed DGCA to grant access to the airport where the aircraft are currently parked for the lessors, their employees, and agents to inspect the aircraft within three days. Earlier, the NCLT-appointed RP had expressed concerns that returning the aircraft to the lessors would render Go First, an airline with 7,000 employees, unviable.

On May 10, the National Company Law Tribunal (NCLT) admitted Go First’s voluntary insolvency resolution petition and appointed Abhilash Lal as the Interim RP to oversee the airline’s management. On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the decision of the Delhi-based principal bench of NCLT, which had accepted Go First’s request to initiate voluntary insolvency resolution proceedings and appointed the Interim RP to suspend the company’s board.

Several lessors had approached the aviation regulator seeking deregistration and repossession of 45 leased aircraft, and Go First has ceased operations since May 3.

VoM News Desk

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