Delhi High Court To Hear On Monday Appeal Against Order Permitting Lessors To Carry Out Maintenance Of Aircrafts On Lease With Go First

The Delhi High Court will hear on Monday the challenge against a single judge order permitting various lessors to carry out inspection and interim maintenance tasks of their aircrafts, which are currently on lease with crisis-hit Go First airline, twice a month until final disposal of their pleas to de-register their planes from the airline.

Senior Advocate Sandeep Sethi mentioned the matter before a division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula.

“We will take it up on Monday,” court said, adding that there is no urgency in the matter to be heard today.

On July 05, the single judge had passed the impugned order on the applications moved by the lessors seeking interim relief in their petitions.

“There can also be no denial of the fact that the Aircrafts of the Petitioners are extremely valuable and highly sophisticated equipment and require regular maintenance for their preservation,” the single judge observed.

It also said that the lessors and its employees or agents shall be permitted by the Directorate General of Civil Aviation (DGCA) and appropriate airport authorities to access the airport where their aircrafts, which are 30 in number, are parked and to inspect them within three days.

“The petitioners (lessors) shall carry out the inspection and interim maintenance tasks of the 30 aircrafts twice a month until final disposal of the writ petitions,” the court had said.

In the meanwhile, the court had also restrained Go First, which is facing insolvency proceedings, and the resolution professionals appointed by National Company Law Tribunal (NCLT) from removing or replacing any part or components of the aircrafts, except with the lessors’ approval.

The single judge observed that the aircraft lessors made out a strong prima facie case in view of the provisions of the Aircrafts Rules and that the balance of convenience was also in their favour. 

The lessors are Pembroke Aircraft Leasing 11 Limited, SMBC Aviation Capital Limited, Accipiter Investments Aircraft 2 Limited and EOS Aviation 12 (Ireland Limited), DAE SY 22 13 Ireland Designated Activity Company, SFV Aircraft Holdings Ire 9 DAC Limited, ACG Aircraft Leasing and GY Aviation Lease 1722 Co Limited. 

On May 22, the National Company Law Appellate Tribunal upheld the order passed by NCLT whereby Corporate Insolvency Resolution Process was initiated against Go Airlines (India) Limited. Go First airlines stopped flying from May 03.

NCLAT had rejected an appeal filed by the lessors challenging NCLT’s direction to keep the leased aircrafts intact in the possession of Go Airlines.

Since the lessors had challenged the imposition of moratorium on leased aircrafts when the lease agreement stood terminated prior to CIRP, the NCLAT granted liberty to IRP and the lessors to file applications before the NCLT with respect to their claims relating to the leased aircrafts.