Go First: Kerala High Court Refuses To Modify Order For Suspension Of Airline's Ticket Booking Portals

The Kerala High Court on Monday refused to modify its previous order dated May 5, 2023, directing the Directorate General of Civil Aviation (DGCA) to check the factual aspects averred by a lawyer in a petition seeking suspension of ticket booking portals of GO First Airlines. The Court had further directed the DGCA that if the same were found to be correct, the Airlines would have to be directed to suspend its ticket booking portals and to further stop their agents from taking any flight bookings.

The Court in this case was dealing with the plea moved by a lawyer seeking the suspension of ticket booking portals of Go First Airlines. An interlocutory application was filed by the Airline company to modify the aforementioned previous Order of the Court. The Court on perusing the same found that no such modification was necessary.

"The petitioner is free to approach the 2nd respondent (DGCA) and convince him about their stand, and if such request is received from the petitioner, the 2nd respondent will give an opportunity of hearing to the 1st respondent (Union of India) and pass appropriate orders in it, in accordance with law," Justice P.V. Kunhikrishnan observed

The petitioner, Adv. Yeshwanth Shenoy, averred that he had booked Go First Airline tickets for himself and his family and friends through the travel portals of ‘ClearTrip’ and ‘EasemyTrip’. The petitioner claimed that it was only thereafter that he came to know from news reports that the Airline Company had filed an application for voluntary insolvency before the National Company Law Tribunal (NCLT), Delhi, and announced cancellation of all flights between May 3 - May 5, 2023. 

The petitioner submitted that an application for voluntary insolvency requires the Approval of Shareholders and the Board of Directors, which in turn, indicated that despite the Company as well its Directors being aware of the intention of the Airlines to suspend its operations, allowed the ticket booking platform to be live. 

The petitioner contended that it was the duty of the airline regulator, Directorate General of Civil Aviation (DGCA), to conduct regular financial audits, and that it failed to do so in the present scenario. 

"The Airline Companies are allowed to take bookings for upto an year in advance and because of the DGCA not performing its duties, several passengers lost their hard earned money, and will end up spending more on booking other flights. The lessors of aircrafts have started acquiring the aricrafts of GO First and there is impossibility of any further operations and yet the DGCA has allowed the Airlines to keep its booking portals open, and many passengers continue to fall prey to 'daylight robbery'," the plea states. 

The petitioner further averred that even if refund of the tickets was made, it would still cause loss to the people who would have to spend more money to book their flights as the costs steadily rise. 

It is under these circumstances that the petitioner approached the Court seeking the issuance of a direction to the DGCA to suspend the ticket booking portal of the Airlines, and to stop their agents from taking any flight tickets. The petitioner further seeks a direction to be issued to the DGCA to produce the audit report of any financial audit they had conducted on the Airline Company in the calendar years 2021 and 2022.

When the matter was first taken up by the Single Judge Bench of Justice Mohammed Nias C.P. on May 5, 2023, the Court had directed the DGCA to check the factual aspects averred, and if found to be correct, to forthwith direct the Airlines to suspend its ticket booking portals and to stop their agents from taking any flight bookings.

It is in order to modify the said Order that the present application was filed by the Airline company, which the Court found unnecessary. 

Senior Advocate Joseph Kodiathara, and Advocates Vinod P.V., D. Reetha, and C. Anchala represented GO Airlines (India) Ltd. 

Case Title: Yeshwanth Shenoy v. Union of India

Click Here To Read/Download The Order