First Go Update: GoFirst will challenge the Delhi High Court order allowing its lessors to inspect the aircraft as there are discrepancies with the order passed by the National Company Law Tribunal in the matter, according to the resolution professional of the grounded airline.
The cash-strapped budget airline has stopped flying since May 3 and is undergoing insolvency resolution process and aviation regulator DGCA is conducting a special audit of the airline, which has sought approval to resume operations.
On Thursday (July 6), senior advocate Ramji Srinivasan, appearing for the resolution professional of GoFirst, told the NCLT that the airline would challenge the High Court order.
There are discrepancies between the order passed by the single member bench of the High Court and the directions given by the NCLT (National Company Law Tribunal).
“As currently being advised, we are considering challenging it,” he added.
Shailendra Ajmera is the airline’s solutions professional.
In his 46-page order passed on Wednesday (July 5), Justice Tara Vitasta Ganju of the Delhi High Court said that the resolution professional is “not required to take control” of properties owned by a third party.
The high court had also directed the DGCA to allow the lessors, their employees and agents access to the airport, where 30 aircraft are currently parked, and inspect them within three days.
As per the earlier order of NCLT, the resolution professional has to maintain the airworthiness of the aircraft and engines which are in his possession.
Learn more about the GoFirst bankruptcy case:
GoFirst is undergoing the Corporate Insolvency Resolution Process (CIRP). On 10 May, the NCLT accepted the airline’s voluntary plea to initiate resolution proceedings. Srinivasan also told the tribunal that the DGCA has constituted a special audit committee to audit the aircraft and its preparedness before allowing them to resume operations as per the business resumption plan.
The DGCA report is expected in a few days, he added. He added that Rs 450 crore has also been secured from lenders, which will help in providing incentives to run the airline.
Meanwhile, the airline has filed its reply before the tribunal on the petitions filed by the lessees of the aircraft and engines. The lessors alleged that the resolution professionals were not maintaining their aircraft as per the final order of the NCLT.
One of the lessors, JSAIL (Jackson Square Aviation Ireland Limited), told the tribunal that whatever the resolution professional is doing is detrimental to Go First. Its counsel Arun Kathpalia said that keeping the aircraft would only increase GoFirst’s cost and other problems.
A two-member NCLT bench comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar had given a week’s time to the lessors to file their rejoinders. The tribunal has directed to list the matter for further hearing on August 4.
The NCLT was hearing petitions filed by nine lessors of GoFirst, including EOS Aviation, Accipiter Investments Aircraft, SMBC, Jackson Square Aviation, Engine Lease Finance and BOC Aviation.
The lessors have approached the NCLT after the appellate tribunal NCLAT in June directed them to approach the tribunal on issues related to the detention of their aircraft.
(with PTI inputs)
Read also: Go to first update: Delhi High Court allows lessors to inspect aircraft | here are the full details
Read also: DGCA plans to conduct ‘special audit’ of GoFirst facilities in Mumbai and Delhi on July 4-6