Go First: An aircraft lessor has moved the Delhi High Court seeking directions to the authorities to release the plane leased to cash-strapped Go First. Earlier this month, the Wadia Group-owned Go First filed for voluntary insolvency resolution and said it can no longer continue to meet financial obligations. Following this move, some aircraft lessors moved the National Company Law Appellate Tribunal (NCLAT) opposing the airline’s insolvency proceedings.
Now, Accipiter Invesments Aircraft 2 Ltd has filed a writ petition before the Delhi HC against the central government and others, according to the news agency PTI. The lessor has requested the high court to direct aviation regulator DGCA to deregister its aircraft which is currently on lease with Go First.
Besides this, Accipiter Invesments Aircraft has moved the NCLAT. Another aircraft lessor Eos Aviation 12 (Ireland) Ltd has also filed a petition before the NCLAT against the crisis-hit airline. Both the petitions are listed before the appellate tribunal for Wednesday.
With a moratorium on financial obligations and transfer of assets of Go First, lessors are unable to deregister and take back the aircraft leased to the carrier. A total of six entities have moved the NCLAT in the Go First case. On Tuesday, the appellate tribunal heard the plea of Ireland-based Engine Leasing Finance.
Three aircraft lessors — SMBC Aviation Capital Ltd, GY Aviation, and SFV Aircraft Holdings — have moved the NCLAT against Go First’s insolvency resolution proceedings. These three lessors have leased out around 21 aircraft to Go First. The NCLAT will pass its order on May 22 on petitions filed by these three aircraft lessors.
A two-member bench reserved its order on Monday after completing the hearing on the three petitions. During the proceedings, senior advocate Arun Kathpalia representing SMBC Aviation submitted it has terminated the lease prior to the commencement of the Corporate Insolvency Resolution Process (CIRP) of Go First.
“Their right on lease has gone,” he said, adding that as per the Cape Town Conventions, there is a protocol for DGCA to cancel the lease in five working days. India is also a signatory and it has to be done by DGCA without taking consent from Go First. “They cannot fly and operate it,” he said.
The National Company Law Tribunal (NCLT) allowed the voluntary insolvency resolution plea by Go First on May 10. So far, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First’s 45 planes.
(With inputs from PTI)
