Delhi HC Instructs Expeditious Decision On Go First Aircraft Lessors’ De-registration Plea

A Division Bench of the Delhi High Court on Wednesday instructed the single-judge to expedite the process and deliver final orders on the plea of aircraft lessors seeking de-registration of their leased planes with Go First Airlines.

The Division Bench, headed by Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula, issued the order while hearing an appeal filed by Go First against the single-judge’s interim order.

Justice Tara Vitasta Ganju had granted an interim order on July 5, allowing aircraft lessors to conduct inspections and maintenance on the planes. The Court also restrained Go First Airlines and the Resolution Professional from removing any parts or documents from the aircraft.

Considering that the Directorate General of Civil Aviation (DGCA) requires approximately 15 days to grant approval for the resumption of Go First flights, the Division Bench directed the matter to be decided by the single-judge first, as the final order is pending.

The Bench stated that parties can request an early hearing of the case.

In the interim, the Resolution Professional will be permitted to perform maintenance on the planes, while lessors are allowed to conduct inspections. The Bench clarified that the DGCA can proceed with the resumption plan for Go First, and the NCLT and single-judge will proceed with the case in accordance with the law.

The Court emphasized that it has not expressed any opinion on the merits of the case, and all contentions will be available to the parties to be raised before the single judge.

The matter originated from an interim order pronounced by Justice Tara Vitasta Ganju on July 5, which granted aircraft lessors access to the planes for maintenance work.

The Court also restrained Go First Airlines and the Resolution Professional from removing any parts or documents from the 30 planes involved. Several lessors, including Pembroke Aircraft Leasing 11, SMBC Aviation Capital, and Accipiter Investments Aircraft 2, had filed a plea seeking de-registration of their aircraft with Go First, arguing that they had terminated their lease agreements due to multiple defaults by the airline.

Go First had filed for corporate insolvency under the Insolvency and Bankruptcy Code (IBC), leading to the NCLT Delhi admitting the plea and declaring a moratorium for the company.