Go First case: Lessors tell Delhi High Court, DGCA must deregister aircraft
Go First case: Lessors tell Delhi High Court, DGCA must deregister aircraft
The matter has been listed for hearing on 30 May
Engaged in a raging dispute, several aircraft lessors of Go First Airlines have pleaded before the Delhi High Court for the deregistration of their planes by the aviation regulator, the Directorate General of Civil Aviation (DGCA).
This will enable them to take back their airplanes from the crisis-hit airline. The lessors stated that the denial of deregistration by DGCA was "illegitimate."
The bench of Justice Tara Vitasta Ganju has asked the parties to file written submissions a day before the next hearing on 30 May.
The four lessors who approached the court are Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, and SMBC Aviation Capital Limited.
With a moratorium on financial obligations and transfer of assets of Go First in the wake of the insolvency resolution proceedings, the lessors are unable to deregister and take back the aircraft leased to the carrier. The lawyers for the lessors said they approached DGCA for deregistration, but their plea was rejected.
Appearing for one of the lessors, senior advocate Mukul Rohatgi, said the aircraft was its property and an interim resolution professional (IRP) has no power to take over the assets of a third party.
Representing EOS Aviation 12 (Ireland) Limited, senior advocate Dayan Krishnan, said that NCLAT cannot deal with the issue of deregistration of aircraft. The remedy lies under Article 226 of the Constitution of India. as the issue is between the lessor and the DGCA.
Another lawyer contended that under the Irrevocable De-registration and Export Request Authorizations (IDERA), it was mandatory for DGCA to deregister the aircraft at their request.
On May 10, the National Company Law Tribunal (NCLT) allowed the voluntary insolvency resolution plea by Go First. However, two days later, the National Company Law Appellate Tribunal (NCLAT) upheld the order of the Delhi-based principal bench of NCLT, which earlier this month admitted the Go First’s plea to initiate voluntary insolvency resolution proceedings. It appointed an IRP to suspend the company's board.
Some other lessors have also approached DGCA for deregistration and repossession of 45 planes in possession of Go First, which stopped flying on 3 May.
