In a recent development, Go First Airlines has officially informed the Directorate General of Civil Aviation (DGCA) that they are currently unable to provide a definite timeline for the resumption of their operations.
The airline has suspended all its fights on May 3, causing disruptions to their services.
Go First’s Suspended Board Files Caveats Against Aircraft Lessors
On Tuesday, the suspended board of Go First took legal action by filing caveats with the Supreme Court against four aircraft lessors associated with the crisis-hit airline.
Varun Berry, the Chairman of the suspended board, filed these caveats through his counsel advocate Pranjal Kishore. The Supreme Court of India’s website provides details regarding the filed caveats.
The lessors named in the caveats include SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC). Together, these lessors own approximately 22 aeroplanes, further complicating the situation.
Caveats Filed in Response to NCLAT’s Order
The caveats filed by Varun Berry and the suspended board of Go First are in response to an order issued by the National Company Law Appellate Tribunal (NCLAT) on Monday. This order upheld a previous order passed by the Delhi bench of the National Company Law Tribunal (NCLT) on May 10.
NCLAT Upholds Insolvency Proceedings Against Go First
In its recent ruling, the NCLAT upheld the insolvency resolution proceedings against Go First, creating a setback for the aircraft lessors who were seeking to reclaim their planes from the troubled Wadia group firm.
According to the NCLAT’s order, the lessors have been instructed to approach the NCLT to address their claims of possession and other related matters concerning the aircraft whose leases were terminated after Go First filed for insolvency.
Lessors Continue Efforts for Deregistration and Repossession
The NCLAT disposed of the pleas made by the lessors and the Insolvency Resolution Professional (IRP) through a comprehensive 40-page order.
It granted the lessors the freedom to file appropriate applications before the NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC), accompanied by necessary pleadings and supporting evidence to substantiate their claims.
In addition, the NCLAT emphasized that both the lessors and the IRP are entitled to approach the Adjudicating Authority (NCLT) to seek a declaration regarding the applicability of the moratorium on the aircraft whose leases were terminated prior to the admission of the Section 10 Application. The Adjudicating Authority will then review and decide on these applications in accordance with the law.
Ongoing Efforts by Lessors for Deregistration and Repossession
This month, numerous lessors have taken the initiative to approach the DGCA, the aviation regulator, seeking deregistration and repossession of Go First’s fleet of 45 planes. These efforts are a response to the airline’s uncertain financial situation and the disruption caused by the suspension of its operations.
As the situation unfolds, stakeholders and industry experts are keenly observing the legal proceedings and the outcome of the ongoing insolvency resolution process for Go First Airlines.