Go Air RP Unable To Undertake Regular Maintenance Of Lessors' Aircrafts: Delhi High Court Issues Show Cause Notice For Contempt

The Delhi High Court has issued a show cause notice to the Resolution Professional (RP) of crisis-hit Go Air as to why contempt proceedings be not initiated against him, observing that he was unable to undertake regular maintenance of the aircrafts of various lessors in terms of last year's judicial orders.

Justice Tara Vitasta Ganju observed that the directions to provide access and inspection of all the aircrafts records to the lessors and carrying out maintenance were not being adhered to by the RP.

“Prima facie, the orders of this Court have been wilfully disobeyed by the Respondent/RP. Issue Notice to show cause as to why proceedings of contempt be not initiated against the Respondent/RP,” the court said.

The counsel appearing for the RP submitted that his client was willing to revert to the position as obtained in the order in question qua maintenance of the aircrafts.

The court was dealing with a contempt plea by the lessors against Go Airlines (India) Limited alleging wilful and deliberate violation of court orders. It was submitted that the directions in the orders, which were passed with a view to protect and preserve the 54 aircrafts of the lessors, were not being complied with by the RP.

The matter will now be heard on March 15.

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: DAE (SY 22) 13 IRELAND DESIGNATED ACTIVITY COMPANY v. GO AIRLINES (INDIA) LTD.

Citation: 2024 LiveLaw (Del) 284

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