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Go First Airlines permitted by NCLT to continue using leased aircrafts

July 26, 2023
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Go First Airlines permitted by NCLT to continue using leased aircrafts
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The National Company Law Tribunal (NCLT) at Delhi on Wednesday refused to restrain the resolution professional of Go First Airlines from using the aircrafts leased to it by six leasing companies.

A bench of judicial member Mahendra Khandelwal and technical member Rahul Bhatnagar was approached by the aircraft leasing companies seeking an order to restrain Go First from commercially operating or flying the aircrafts owned by the lessors.

“It is pertinent to mention that the Directorate General of Civil Aviation (DGCA) has not deregistered the aircraft, which means that they are available to the Corporate Debtor for use to resume operations. As long as the aircraft/engines are registered, they can be used for operating or flying to keep the Corporate Debtor as a going concern within the safety norms prescribed by the regulator,” the order said.

The tribunal referred to its order of May 10 which admitted the company to insolvency proceedings on its own application and directed the interim resolution professional to keep the airline company as a going concern. 

“Hence, the aircraft shall be with the airline company and shall be operated by it,” the order passed today said.

The tribunal also did not allow the leasing companies to conduct inspections of their aircraft/engines. 

“Allowing inspection would only act as an impediment to the effective discharge of the duties of the resolution professional which includes the protection and maintenance of the engines at the prescribed levels of efficiency/safety,” the tribunal said. 

The tribunal directed the resolution professional to ensure that the property, engines and aircraft are maintained at the highest level of efficiency. 

[Read Order]

Bluesky 31 leasing company ltd & 5 others v. Shailendra Ajmera.pdf

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