The Delhi HC on April 26 directed the Directorate General of Civil Aviation (DGCA) to process deregistration of leased aircraft to GoFirst. The High Court also directed the resolution professional to provide all up-to-date information of aircraft to the lessors.
According to the order, lessors will get access to aircraft. Those lessors who do not wish to export their aircraft can move for appropriate steps.
The Airports Authority of India (AAI) will communicate with the lessors regarding export of aircraft and airworthiness, the HC said.
Aircraft lessors, including Pembroke Aviation, Accipiter Investments Aircraft 2, EOS Aviation and SMBC Aviation filed a writ in May 2023 before the Delhi High Court, seeking directions to release the planes leased to the financially distressed airline.
While the DGCA had initially said that it could not deregister these aircrafts owing to the moratorium having set, the Ministry of Corporate Affairs issued a notification on October 4, 2023 stating that the provisions of sub-section (1) of section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC), would not be applicable to transactions, arrangements or agreements relating to aircraft, aircraft engines, airframes and helicopters.
DGCA filed an affidavit in the High Court clarifying that the notification exempting aviation leases from moratorium under the IBC should apply to pending cases as well.
While the litigation was pending, two bids were submitted for Go First – from a consortium led by SpiceJet chief Ajay Singh and Nishant Pitti’s Busy Bee Airways, and another one from Sharjah-based Sky One. The airline’s lenders are yet to take a final call on them.
Go First was admitted into insolvency resolution process in May last year after it had filed a voluntary plea for insolvency.
