The Kerala High Court has denied Go Airlines' application to amend the interim order issued on May 5, 2023. The order mandated the DGCA to investigate whether Go Airlines had declared its intention to temporarily halt flight operations during the insolvency proceedings filed before the NCLT. If such a statement was made, the Court directed the Airlines to suspend their ticket booking portals and prohibit their agents from accepting any flight bookings.
Brief Facts:
Advocate Yeshwant Shenoy lodged a Writ Petition asserting that Go First Airlines, despite declaring voluntary insolvency and suspending their operations, continued to allow ticket bookings through their online platforms. This led to an unjust act of defrauding passengers, causing them to lose their hard-earned money.
In the Petition, Shenoy emphasized that the Airline company's actions resulted in financial losses for individuals, as Go First had no intention to resume operations. Furthermore, he argued that by keeping their booking portals active, the company facilitated fraudulent practices, exposing numerous individuals to financial exploitation. Shenoy also pointed out the failure of the DGCA (Directorate General of Civil Aviation) to fulfill its obligations in regulating this matter.
Taking these concerns into account, the Kerala High Court issued an order mandating the DGCA to investigate the allegations. If the claims were found to be valid, the court directed Go First Airlines to immediately suspend their ticket booking portals and instructed their agents to cease accepting any flight bookings.
Subsequently, Go First Airlines approached the High Court to seek a modification of this order, contending that the initial interim order had been issued without granting them an opportunity to present their case. They argued that the order violated the principles of natural justice, as it was solely based on the assertions made by the petitioner, Yeshwant Shenoy, who represented himself in the proceedings.
Contentions of the Appellant:
Adv. Yeshwanth Shenoy, the petitioner, stated that he had booked Go First Airline tickets for himself, family, and friends through travel portals such as 'ClearTrip' and 'EasemyTrip.' It was only later through news reports that he discovered the airline had filed for voluntary insolvency before the NCLT, Delhi, and had announced flight cancellations from May 3 to May 5, 2023. The petitioner argued that the airline's decision to allow ticket bookings despite their awareness of the impending suspension of operations indicated negligence on the part of the company and its directors. The petitioner further claimed that the DGCA, responsible for financial audits, failed in its duty in this case.
"It is reiterated that Respondent No.3 has over 7,000 direct employees and 10,000 indirect employees and an aggregate outstanding debt of INR 2660 crores towards operational dues, as on 2 May 2023. Hence, the public interest in ensuring a revival of Respondent No.3 through the CIRP is manifest and severe prejudice would be suffered by all stakeholders if such public interest is overlooked at the instance of the Petitioner"
Observations by the Court:
The High Court denied the request for order modification and instructed Go Airlines to present their case to the DGCA and seek their approval. Justice PV Kunhikrishnan emphasized that if the DGCA receives such a request from Go Airlines, they must provide Yashwant Shenoy an opportunity to be heard.
During the initial hearing on May 5, 2023, before Justice Mohammed Nias C.P., the Single Judge Bench instructed the DGCA to verify the factual claims made. If the claims were found to be accurate, the Court directed the DGCA to immediately mandate the suspension of the airline's ticket booking portals and prohibit their agents from accepting any flight bookings.
Decision of the Court:
The court rejected the application.
Case Name: Yeshwanth Shenoy v. Union of India
Coram: Justice P.V.Kunhikrishnan
Case No.: IA.No.1/2023 In Wp(C) No. 15297 Of 2023(J)
Advocate for the appellant: Senior Advocate Joseph Kodiathara, and Advocates Vinod P.V., D. Reetha, and C. Anchala
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