Go First Gets Relief from NCLT, Can Continue Using Leased Aircraft

The National Company Law Tribunal in New Delhi has refused to stop Go First from using leased aircraft and has said only the resolution professional has the right to protect and maintain the aircraft and the engines.

The tribunal said that since the Directorate General of Civil Aviation has not deregistered the aircraft, they will be available to Go First to resume operations. The NCLT clarified that as long as the aircraft are registered, the airline can use them, subject to the norms prescribed by the regulators.

The tribunal also rejected the requests of lessors to inspect the leased engines of the aircraft. Since the resolution professional has already been allowed to care for and maintain the aircraft by the tribunal, there is no need to allow any inspection, it said.

Previously, the Delhi High Court had allowed Go First to maintain the planes, while the lessors were allowed to inspect them monthly. The high court also asked Go First not to take out any parts of the plane without the permission of the lessors.

Clarifying the tribunal’s position after the high court order, the bench observed that the lessors before the NCLT were not parties in the deregistration proceedings before the high court. Hence, the tribunal’s order is applicable to the lessors before it.

The lessors before the NCLT include Bluesky 31 Leasing Co., Jackson Square Aviation Ireland Ltd., SMBC Afro Engine Lease B.V., BOC Aviation (Ireland) Ltd., and Engine Leasing Finance Ltd. They had contended that the airline does not have the right to operate the aircraft they had leased to it as the lease agreements have already been terminated.

However, Go First argued that if the aircraft were taken away from it, the airline would not be able to sustain itself.