Go First Airlines’ Resolution Professional Challenges Delhi HC’s Inspection Order

An appeal has been filed by the Resolution Professional of Go First Airlines challenging the recent order of the Delhi High Court that permitted aircraft lessors to conduct inspections and maintenance on leased aircraft.

Senior Advocate Sandeep Sethi mentioned the appeal for urgent listing before a division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula. The Court has scheduled the case for Monday.

The order issued on July 5 by Justice Tara Vitasta Ganju granted access to the aircraft lessors for maintenance purposes and restrained Go First Airlines and the Resolution Professional from removing any parts or documents from the 30 aircraft in question.

The interim order was passed in response to a plea by multiple lessors seeking de-registration of their aircraft currently with Go First Airlines. The lessors argued that their applications for de-registration had been rejected by the Director General of Civil Aviation (DGCA).

They contended that the Insolvency and Bankruptcy Code (IBC) did not encompass relevant provisions for de-registration cases, making bankruptcy tribunals incompetent to hear their pleas. The lessors claimed that they had terminated their lease agreement with the airline prior to its insolvency application due to multiple defaults by Go First.

The case originated when Go First approached the National Company Law Tribunal (NCLT) in Delhi to initiate the corporate insolvency resolution process under the IBC. On May 10, the NCLT admitted the plea and declared a moratorium for the company, instructing the suspended board of directors to cooperate with the Interim Resolution Professional to avoid layoffs.

The NCLT’s decision was subsequently upheld by the National Company Law Appellate Tribunal (NCLAT) on May 22.