Today, the Supreme Court of India refused to entertain Go First’s petition challenging orders of the Delhi High Court order permitting lessors to inspect their aircraft and carry out maintenance.
The bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra mebtioned that the Delhi High Court is seized of the matter and hearing it on a day-to-day basis, it was not going to entertain the plea at this stage.
Senior advocate Shyam Divan, counsel for the IRP, said efforts to revive the company will be hampered if the lessors are permitted to cancel the lease deed with regard to aircraft and engines.
“We will not entertain. Since the proceedings are pending before the Delhi High Court where petitions are being argued on a day-to-day basis, we are not entertaining this at the present stage. Let the jurisdictional issues also be addressed before the single judge (of the high court),” the bench said.
Senior advocate Shyam Divan, has challenged the order of Delhi High court which had upheld the verdict of the single judge bench in the case.
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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