Go First Airlines takes legal battle to Supreme Court over aircraft leasing dispute

Go First Airlines takes legal battle to Supreme Court over aircraft leasing dispute

Go First Airlines has escalated its legal dispute by approaching the Supreme Court after the Delhi High Court Division Bench declined to intervene in a single-judge's directions allowing aircraft lessors access to their leased planes operated by the airline. 

Senior Advocate Ramji Srinivasan, representing the Resolution Professional of Go First, confirmed that they have filed an appeal against the Division Bench's decision and are endeavoring to get the matter listed for hearing on Friday or Monday.

Despite the pending appeal, Justice Tara Vitasta Ganju of the Delhi High Court continued with the hearing of the lessors' petitions, aiming to finally decide the contentious matter. On July 5, the High Court issued an interim order granting aircraft lessors access to the planes they had leased to Go First Airlines, authorizing them to perform maintenance work on the aircraft.

Challenging the High Court's interim order, Go First Airlines sought redress before the Division Bench. However, the Bench comprising Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula declined to interfere with the original order. Instead, they urged the single-judge to expedite the case resolution.

The Division Bench also modified one of the directions in favor of Go First, enabling the airline to conduct all maintenance tasks related to the aircraft, their engines, and other components.

The legal dispute arose when several aircraft lessors approached the High Court with complaints that their applications for the de-registration of their leased aircraft were rejected by the Directorate General of Civil Aviation (DGCA). They argued that the Insolvency and Bankruptcy Code (IBC) lacked relevant provisions to address de-registration cases, making even bankruptcy tribunals incompetent to hear their pleas.

The issue came to light after Go First Airlines initiated the corporate insolvency resolution process under the IBC by approaching the National Company Law Tribunal (NCLT) in Delhi. On May 10, the NCLT Delhi admitted the plea and imposed a moratorium on the company. The NCLT also directed the company's suspended board of directors to cooperate with the Interim Resolution Professional to prevent layoffs during the resolution process.

The NCLT's decision found affirmation in the National Company Law Appellate Tribunal (NCLAT) order, which was pronounced on May 22, further reinforcing the legal position regarding Go First Airlines' corporate insolvency resolution process. The final verdict from the Supreme Court will be eagerly awaited as it will have significant implications for both the aircraft lessors and the airline in question.

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