Go First resolution professional not able to maintain aircraft: Delhi HC | Company News – Business Standard

The Delhi High Court on Friday said that Go First’s Resolution Professional (RP) is unable to maintain the aircraft as per its records.

Justice Tara Vitasta Ganju told the RP to tell the court on March 6 if they will hand over the maintenance of the aircraft in question to a third-party facility or the lessors.

The court warned the RP that it may issue him a notice in the contempt petition if a consensus is not reached on the issue.

This was on a plea of contempt filed by lessor DAE (SY22) 13 Ireland Designated Activity Company in November last year against the RP for not complying with the court’s orders to provide maintenance records to the lessors.

Ten out of fourteen lessors in the case supported the plea for contempt proceedings against the RP.

The RP had told the court last year in December that aircraft lessors have proposed a third-party agency to provide documentation and maintenance of the aircraft.

The RP said that certain aircraft lessors, namely SMBC Aviation Capital, Aviation Capital Group, Jackson Square Aviation, and EOS Aviation (cumulatively owning 23 aircraft), held in-person meetings with them on November 9 at Mumbai, wherein the said lessors proposed a third-party agency as the MRO/CAMO (Maintenance, Repair, and Overhaul/Continuing Airworthiness Management Organisation) tasked to provide aircraft documentation and undertake maintenance of the aircraft.

It was informed by the aforesaid lessors that once a contract is executed with the proposed MRO, a communication will be issued to the Directorate General of Civil Aviation (DGCA) seeking the required approvals to allow the said MRO to proceed with maintenance activities on the aircraft, the RP told the court.

He also told the court that the lack of operational cash flows has made it impossible for it to retain technical professionals entrusted with the responsibility to maintain the aircraft.

The National Company Law Tribunal (NCLT) on February 13 extended the insolvency process of the grounded airline Go First by 60 days after the RP of the airline told the tribunal that some parties have expressed interest in taking over the carrier.

Budget carrier SpiceJet’s Managing Director, Ajay Singh, and Busy Bee Airways have jointly submitted a bid of 16 billion rupees ($193.10 million) for the airline.

The airline has also received a financial bid from Sharjah-based Sky One Airways which is lower than the competing bid.

Go First filed for voluntary insolvency on May 2 under Section 10 of the Insolvency and Bankruptcy Code (IBC), and on May 10, the NCLT admitted Go First’s insolvency plea.

Go First’s aircraft lessors had then filed an appeal against the NCLT order in the National Company Law Appellate Tribunal (NCLAT). The NCLAT upheld the NCLT order, and the matter was sent back to the NCLT.

Meanwhile, the lessors have also filed a case in the Delhi High Court against the Directorate General of Civil Aviation (DGCA), seeking to release their aircraft.

First Published: Mar 01 2024 | 8:09 PM IST