Justice Tara Vitasta Ganju while restraining the carrier’s resolution professional (RP) from operating, accessing or flying these planes handed over the maintenance work of the aircraft back to the lessors. It also restrained the RP from replacing, taking out any accessories, spare parts, documents or any material from the aircraft while directing him to provide up to date information and documentation related to the aircraft to the lessors.
The HC also quashed the aviation regulator’s communication against processing the applications of lessors to deregister their leased planes due to a moratorium imposed by the National Company Law Tribunal (NCLT) on the airline’s assets.
Further, the judge directed the DGCA to facilitate the exports and provide certificates of airworthiness to the lessors, who were permitted to export their aircraft. The DGCA and the Airport Authority of India (AAI) will have to assist the lessors in accessing the airports for the purpose of exporting the aircraft.
Pursuant to the NCLT on May 10 admitting a voluntary insolvency application against Go First airline and declaring a moratorium on all its assets, the DGCA had informed the lessors that it could not process their applications for deregistration as there was a moratorium on the airline’s assets. The DGCA’s decision was challenged by the airlines’ lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation and SMBC Aviation, in the HC.
Soon after the judgment, Nishant Pitti on behalf of Busy Bee Airways, in a tweet said that, “we have acknowledged the judgment issued by the Delhi HC… We will review the details of the order once we receive the official document. Following this review, we will evaluate our position and consider any necessary adjustments to our proposed offer for Go Air. Our commitment remains to proceed in a manner that respects the legal process and aligns with our strategic objectives.” “We are waiting to get the entire copy of the court judgement. Based on what media reports are suggesting, we respect the court’s judgment. As far as our bid for Go First is concerned, the de-registration does not alter our plans for the Indian aviation industry. If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” said Jaideep Mirchandani, Chairman Sky One, another bidder.In its bankruptcy filing, Go First blamed had its financial crunch on “faulty” engines of US-based Pratt & Whitney, claiming it was forced to ground 28 of its 56 planes.
The grounded airline owes its creditors over Rs 6,200 crore.
During the pendency of the case before the HC, the Ministry of Corporate Affairs’ had issued a notification on October 3 exempting all transactions and agreements related to aircraft, their engines, and helicopters from mandatory moratorium during a bankruptcy process under IBC. Even the DGCA had then clarified to the court that aircraft and engines leased to cash strapped airline can be deregistered and returned as the notification would have a “retrospective” effect.
On April 8, the NCLT granted a third extension of 60 days to Go First for the completion of the airline’s corporate insolvency resolution process. SpiceJet Ltd chairman and managing director Ajay Singh and Nishant Pitti-led Busy Bee Airways, have jointly submitted a bid for Go First. Another bid is from Sky One, an aviation firm headquartered in Sharjah led by Jaideep Mirchandani.
