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Go First on Thursday told the National Company Law Tribunal (NCLT) that it will appeal the Delhi High Court order of July 5 which said the insolvent airline cannot fly the leased aircraft.
“The respondent, Go Air, its directors, employees, agents, officers or representatives, or the Resolution Professionals (RP) or their representative as appointed by the NCLT are hereby restrained from removing, replacing, taking out any part or component, or any relevant operational or other manual records, documentation from any of 30 aircraft except with prior written approval of lessor of such aircraft,” the Delhi High Court said on Wednesday.
It said there can be no denial that the aircraft of the petitioner lessors are highly valuable and sophisticated equipment and require maintenance for their preservation. This has led to a tussle between the lessors and the airline on whether the aircraft can be flown by the insolvent airline as per the revival plan.
The Delhi HC also allowed lessors of Go First to do inspection and maintenance relating to the aircraft in possession of the insolvent airline until the final disposal of the writ petition (of the lessors).
The order of July 5 said that the NCLT does not have the power of judicial review over administrative action. This means that the process of deregistration of 30 aircraft is outside the purview of the NCLT.
The HC in its order also said that 30 aircraft are assets owned by the lessors which were previously under a contractual agreement with the corporate debtor. It said Section 18 of the Insolvency and Bankruptcy Code excludes assets owned by a third party under the definition of ‘assets’.
This essentially means that the Interim Resolution Professional (IRP) is not required to take control of the ‘assets’(the 30 aircraft in this case) under the provisions of the IBC.
Senior Advocate Ramji Srinivasan, appearing for the Resolution Professional of Go First, told the tribunal not to pass any interim orders. Srinivasan said that the Committee of Creditors has given him the nod to ensure that the insolvent airline flies again.
He said that the lenders have committed an interim funding of around Rs 450 crore to revive the airline. He also said that the Singapore International Arbitration Centre (SIAC) has recently reaffirmed its earlier order directing engine maker Pratt and Whitney to supply 5 engines every month.
Srinivasan submitted that the RP has filed responses to the applications of the lessor and asked the tribunal to direct the lessors to file rejoinders to the same.
Senior Advocate Arun Kathpalia, appearing for one of the lessors, told the tribunal that Go First has ‘crash landed’.
“Their revival plan is as grounded as their aircraft,” he said.
The NCLT has kept the next hearing on August 4. The tribunal will decide whether Go First would be allowed to operate the aircraft leased out to them after the parties give their submissions to the tribunal.
Go First stopped flying on May 3.
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