August 4, 2023
In a recent development, the National Company Law Tribunal (NCLT) has ordered Go First management to provide a detailed maintenance report of its aircraft within the next 10 days.
The directive came during a hearing that took place in response to a plea submitted by aircraft and engine lessors.
The aircraft lessors of Go First had approached the NCLT seeking information about the maintenance of their leased assets.
The plea submitted by Aircraft lessors
They informed the court about alleged negligence in aircraft maintenance and duties on the part of the airline’s Resolution Professional (RP). In response, the RP requested additional time to file a reply.
Representing the RP, Senior Lawyer Ramji Srinivasan highlighted that the lessors had engaged with the airline through various channels, indicating a series of developments in the matter.
Notably, one of the lessors, who did not receive a response from the NCLT, has taken the matter to the Delhi High Court, seeking to restrain the airline from carrying out maintenance and operations.
Another lessor has approached the National Company Law Appellate Tribunal (NCLAT) to challenge an interim order that allowed Go First to resume its flight operations.
The NCLT’s previous order dated July 27 granted Go First permission to utilize ground-leased aircraft and resume its operations.
This decision was based on the understanding that the civil aviation regulator, Directorate General of Civil Aviation (DGCA), had not deregistered the aircraft, implying that they remained available for the airline’s operations.
Meanwhile, proceedings are underway in the Delhi High Court before a single bench judge, in response to the lessors’ plea to deregister the aircraft. Go First has escalated the matter to the Supreme Court, contesting the Delhi High Court division bench’s order that upheld the single bench’s decision, allowing the lessors to inspect the parked aircraft.
Go First has also approached the NCLT with a request to refund passengers who had made advance bookings starting from May 3, when the company filed for insolvency.
The NCLT has issued notices to the Committee of Creditors (COC) and is set to address the matter on August 7.
On May 10, the NCLT’s principal bench in Delhi had accepted Go First’s voluntary plea to initiate an insolvency resolution process.
This resulted in the appointment of an Insolvency Resolution Professional (IRP), suspension of the airline’s board, and imposition of a moratorium on its financial obligations.
As the legal battles and regulatory actions continue, the future of Go First hangs in the balance, with stakeholders eagerly awaiting the outcome of these proceedings.
