The Delhi High Court on Friday restrained Go First Airlines from flying the airplanes leased out by various companies, while also ordering the de-registration of the cash-strapped airline.
The single-judge Bench of Justice Tara Vitasta Ganju asked the Directorate General of Civil Aviation (DGCA) to initiate the de-registration process within five working days.
The Resolution Professional (RP) of Go First was also restrained from replacing or taking out any accessories, spare parts, documents, or other material from the planes.
The High Court further directed the RP to provide up-to-date information and documentation in connection to the aircraft to the lessors.
The order was passed on 14 petitions filed by various companies who had leased their aircraft to Go First Airlines, which is currently undergoing insolvency.
The aircraft lessors had stated that they had filed applications for the de-registration of their aircraft, but the same were rejected by the DGCA.
The petitioners contended that the Insolvency and Bankruptcy Code (IBC) did not have relevant provisions for dealing with cases pertaining to de-registration and hence, even bankruptcy tribunals were not competent to hear their pleas.
Earlier on July 5, 2023, the High Court had passed an interim order, permitting the lessors to access the planes to carry out the maintenance work on them.
The High Court further allowed the lessors’ representatives to inspect the planes and restrained Go First and its Interim Resolution Professional (IRP) from removing any parts or documents from the planes in question.
Go First challenged the order before the Division Bench, which refused to disturb the single-judge’s directions, but modified one of the directions to the extent that the cash-strapped airlines can carry out maintenance of the aircraft, their engines, and other parts & components.
The airlines then moved the Supreme Court, which also dismissed its appeal on August 7.
Go First had last year moved the National Company Law Tribunal (NCLT) in Delhi to initiate the corporate insolvency resolution process under the IBC.
On May 10, the NCLT Delhi admitted the plea and declared a moratorium for the company. It also directed the company’s suspended board of directors to co-operate with the IRP to ensure there are no layoffs.
On May 22, the National Company Law Appellate Tribunal (NCLAT) upheld the decision to initiate insolvency proceedings.