Go First Case: Delhi High Court Directs DGCA To Process De-Registration Of Leased Aircrafts

The Delhi High Court on Friday passed a slew of directions to de-register 54 aircrafts of various lessors on lease with the crisis-hit airline Go First.

While disposing of a batch of pleas moved by the lessors, Justice Tara Vitasta Ganju set aside the communication letters issued by the Director General of Civil Aviation (DGCA) declining to process new registration applications of the lessors.

The court directed the DGCA to forthwith, and no later than the next five working days, process the deregistration applications filed by the lessors in respect of all 54 aircrafts.

The court ordered that all maintenance tasks in respect of the aircrafts shall be undertaken by the lessors and all of their authorized representatives up to and until the time the aircrafts are de-registered and exported, in pursuance of Rule 32A of the Aircraft Rules.

“The respondent DGCA and respondent Airport Authority of India (AAI) shall and assist the petitioner lessors and grant them access to the airports…” the court said.

Further, Justice Ganju restrained the Resolution Professional (RP) of Go Air and the airline from accessing or entering or in any manner operating or flying any of the aircrafts.

The RP and Go Air have also been restrained from removing, replacing, taking out any accessories, spare parts, documents, records, materials etc from the aircrafts.

“..the respondent RP shall forthwith provide up to date information and documentation in relation to the aircraft and the petitioner lessors are permitted to export aircraft as per the Aircraft Act, Aircraft Rules and applicable laws,” the court said.

On July 5, 2023, the court had permitted the lessors to carry out inspection and interim maintenance tasks of their aircrafts, twice a month until final disposal of their pleas to de-register their planes from the airline.

The court had 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 were parked and to inspect them.

Later, an appeal was moved by Go Air against the order of the single judge. On the appeal, the division bench permitted the airline to carry out maintenance of the aircrafts, subject to a monthly inspection by the lessors. 

The airline had then moved the Supreme Court appealing against the single judge order which was rejected.

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, last year, 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, 2023.

Later, NCLAT rejected an appeal filed by the lessors challenging NCLT's direction to keep the leased aircrafts intact in the possession of Go Airlines. Subsequently, the matter reached the Delhi High Court.

Title: Accipiter Investments Aircraft 2 Limited v. Union of India & Anr.

Citation: 2024 LiveLaw (Del) 501