Supreme Court Dismisses Go First Airline RP's Plea Against Delhi HC Order Permitting Lessors To Access Aircrafts On Lease

The Supreme Court on Monday refused to entertain the appeal filed by the Resolution Professional of Go Airlines India Ltd against the Delhi High Court order which had permitted various lessors to carry out inspection and interim maintenance tasks of their aircrafts, which are currently on lease with crisis-hit Go First airline. The bench comprising CJI DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra noted that the arguments raised by Go First had already been raised before the Delhi High Court. Therefore, the bench found no reason to interfere with the ongoing proceedings before the Delhi High Court.

CJI DY Chandrachud, noting the arguments raised by the counsels, said–

"At the end of the day, you have raised these arguments before the single judge. Why should we restrain the hearing before the single judge? Let the single judge decide. Why should we enter into this at this stage?"

On July 5, 2023, the Delhi High Court had permitted various lessors to carry out inspection and interim maintenance tasks of their aircrafts, which are currently on lease with airline undergoing insolvency resolution, twice a month until final disposal of their pleas to de-register their planes from the airline. In the judgment on the applications moved by the lessors seeking interim relief in their petitions, Justice Tara Vitasta Ganju had said: “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 court 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. 

Later, an appeal was moved by Go Air against the order of the single judge. On the appeal, a division bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula of the Delhi High Court permitted Go First to carry out maintenance of the aircrafts which are currently on lease, subject to a monthly inspection by the lessors. 

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

The court stated–

"We will not entertain. Since proceedings pending before Delhi High Court where petitions are being argued on day to day basis. We are not entertaining this at the present stage. Let the jurisdictional issues also be addressed before the single judge." 

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.

Senior Advocate Shyam Divan represented the appellant.

The aircraft lessor SMBC Aviation Capital was represented by Senior Advocate Dhruv Mehta, Ms. Marylou Bilawala, Mr. Pranaya Goyal, AoR, Mr. Dhruv Khanna, Ms. Sharleen Lobo, Mr. Chiranjivi Sharma, Ms. Apoorva ,Kaushik, Ms. Sakshi Malpekar, Ms.Priya Desai, Ms. Neetika Sharma, Mr. Girish Shankar, Mr. Vasu Gupta, Advocates from Wadia Ghandy & Co.

Case Title: GO AIRLINES INDIA LIMITED  v. SMBC AVIATION CAPITAL LIMITED| SLP(C) No. 16762-16769/2023

Click Here To Read/Download Order