Go First Airlines, the crisis-hit airline that is currently undergoing insolvency resolution proceedings has faced legal battles over the issue of maintenance flights. The airline recently approached the Supreme Court against a Delhi High Court Division Bench order, which had refused to interfere with a single judge's directions allowing aircraft lessors access to the planes they had leased to the airline.
Senior Advocate Ramji Srinivasan appeared for the Resolution Professional of Go First before Justice Tara Vitasta Ganju and informed the court about their appeal against the Division Bench order. The matter is expected to be listed soon.
In a previous interim order issued on July 5, the High Court had allowed aircraft lessors access to the planes they had leased to Go First Airlines, permitting them to conduct maintenance work as well. Go First contested this order before the Division Bench, which refused to interfere with the order but directed the single judge to decide the matter expeditiously.
However, in a recent hearing, the High Court restrained Go First Airlines from continuing maintenance flights, stating that scheduled maintenance cannot include the flying of aircraft. The court observed that the Resolution Professional had failed to show any urgency or imminent threat to the aircraft, compelling them to fly the planes suddenly and without prior notice. The interim order was extended until further orders.
The ongoing legal battle arises from several aircraft lessors' applications for de-registration of their aircraft, which were rejected by the Directorate General of Civil Aviation (DGCA). They argued that the Insolvency and Bankruptcy Code (IBC) lacked relevant provisions for addressing de-registration cases, making the bankruptcy tribunals incompetent to hear their pleas.
The matter unfolded after Go First initiated the corporate insolvency resolution process under the IBC, leading to the National Company Law Tribunal (NCLT) in Delhi admitting the plea and declaring a moratorium for the company. Subsequently, the NCLAT upheld the NCLT's decision.
As the legal battles continue, Go First Airlines' operations and asset management remain uncertain. The legal proceedings will play a significant role in determining the future of the crisis-hit airline, while the Supreme Court's upcoming decision will have a considerable impact on the resolution process.
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