Didn't Get A Chance To Oppose Go First's Insolvency Plea, Lessor Says

The lessors never got the opportunity to oppose Go First's voluntary insolvency application, SMBC Aviation told the National Company Law Appellate Tribunal on Thursday. The lessor is arguing against the order of the National Company Law Tribunal admitting Go First into insolvency and the consequent moratorium.

Senior Advocate Arun Kathpalia appeared on behalf of SMBC and submitted that they've not been served with a copy of the airline's insolvency petition. The NCLT, he said, gave its ruling without allowing the lessor to properly oppose the petition and did not give it an opportunity to proceed under Section 65 of the Insolvency and Bankruptcy Code.

Section 65 provides for a course of action to be taken against a company when insolvency proceedings are filed with malicious intent.

SMBC Aviation said there was no hurry to pass such an order when there was no pressure of any kind from any financial creditor of the airline. The only party such an order would affect would be the lessors, Kathpalia said.

The SMBC's lease agreements with airlines were terminated prior to the NCLT order, he said. Yet, without any authority, the airline had deployed its security and access ladders to their aircraft.

During the hearing, representing the suspended management of Go First, Senior Advocate Maninder Singh said they have not been added as respondents to the appeal by SMBC. He requested that the suspended management also be added among the respondents.

The bench, comprising Justice Ashok Bhushan and Barun Mitra, will continue to hear the matter on Friday.