Go First, the grounded airline previously known as GoAir, has taken legal action in response to a recent Delhi High Court order that granted aircraft lessors access to 30 planes leased to the airline for maintenance purposes.
The airline has appealed the order, which was passed by Justice Tara Vitasta Ganju and allowed the lessors to inspect and maintain their leased aircraft. The order also prohibited Go First from removing any parts from the planes. Meanwhile, the resolution professional of Go First has requested the National Company Law Tribunal (NCLT) not to extend the Delhi High Court order, stating that it would make the revival of the airline more challenging.
The single-judge order came after the lessors initiated a plea for the de-registration of their aircraft, citing multiple payment defaults by Go First. The court's interim order granted the lessors permission to inspect and conduct maintenance work on their aircraft and their parts, while also highlighting the necessity of regular maintenance for complex and expensive machinery.
In response to the lessors' plea, the Delhi High Court directed the Director General of Civil Aviation (DGCA) and the relevant airports to grant access to the lessors within three days. The court's order also restricted Go First from removing or replacing any parts or components without the explicit permission of the lessors. However, Go First has expressed concern over the restrictive nature of the order, stating that it may hinder the regular operation and maintenance of the aircraft.
The legal representatives of the lessors argued that the lessor-airline relationship is governed by contractual agreements and modifying these terms without legal sanction could have consequences for the Indian aviation sector. The DGCA clarified that it was following the court's orders and had not rejected any lessor's application for repossession during the moratorium.
Separately, Go First's resolution professional informed the NCLT that they would challenge the Delhi High Court's decision and emphasized their efforts to operate the airline as a going concern. The resolution professional also expressed confidence in obtaining approval from the special committee of the DGCA to restart operations.
The NCLT has issued notices in response to new applications filed by aircraft lessors, granting two weeks to reply and one week for a rejoinder. The applications will be considered on August 4. Meanwhile, the committee of creditors has approved interim funding of Rs 425 crore for Go First, subject to clearance from the DGCA. The airline is currently undergoing a security audit by the regulator.
With the legal challenges underway, the future of Go First remains uncertain. The airline continues to grapple with financial distress and outstanding loans from creditors, including the Central Bank of India, Bank of Baroda, and Deutsche Bank.
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