In the midst of a legal battle over the operational fate of Go First airline, the National Company Law Appellate Tribunal (NCLAT) has granted permission to Engine Lease Finance BV, an engine lessor, to inspect their four engines that are currently being utilized by the grounded airline.
The NCLAT's decision, made on August 18, modifies the National Company Law Tribunal's (NCLT) order from July 26. The NCLT had previously allowed Go First to use leased aircraft for its operations while refraining the engine lessor from inspecting their leased engines.
Engine Lease Finance BV, represented by lawyer Anandh Venkatramani, argued that it is crucial to inspect the engines, each valued at $15 million, due to their significance and complexity. The engine lessor emphasized that inspection is necessary for maintenance and safety.
Despite the Resolution Professional's (RP) communication in June 2023, indicating the possibility of inspection, the actual inspection had not been carried out. Venkatramani also cited the Delhi High Court's decision allowing aircraft lessors to inspect parked aircraft.
In response, senior advocate Ramji Srinivasan, representing the RP, requested the NCLAT to refrain from intervening in the NCLT proceedings, as the final hearing in the case is scheduled for September 1. However, the NCLAT overruled this and stated that engine inspection should be permitted.
Furthermore, the NCLAT urged the NCLT to expedite the process and resolve the matter quickly, considering the substantial stakes involved in the case.
The legal saga began when the NCLT, in July, granted Go First the authority to utilize leased aircraft for operations, under the premise that these aircraft are essential to maintaining the airline as a going concern. However, the NCLT dismissed lessors' plea to inspect their aircraft and engines, contending that maintenance and protection would be overseen by the RP.
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