NCLT Directs GoFirst RP To Submit Affidavit On Latest Developments

The NCLT’s two-member bench, including Mahendra Khandelwal and Rahul P Bhatnagar, directed the resolution professional (RP) to submit an extra affidavit within the next 10 days.

The bench further asked for an affidavit including the maintenance status of the leased aircraft.

Source : PTI

The National Company Law Tribunal (NCLT) on Friday asked GoFirst’s resolution professional to provide details of the latest developments about the airline. 

The NCLT’s two-member bench, including Mahendra Khandelwal and Rahul P Bhatnagar, directed the resolution professional (RP) to submit an extra affidavit within the next 10 days. The bench further asked for an affidavit including the maintenance status of the leased aircraft, reported PTI. 

Further, the insolvency tribunal directed the RP to submit the reply with regards to the pleas filed by three new lessors for the airline in two weeks and a rejoinder, if any, by them next week. DAE (SY 22) 13 Ireland, EOS Aviation 12 Ireland, and Accipiter Investments Aircraft 2 Ltd. are the three new lessors for the airline. The tribunal has set September 1 for the next hearing on the matter. 

The report further noted that pleadings on the petitions filed by six other lessors have been completed. 

Senior Advocate Ramji Srinivasan, representing the RP, informed the tribunal that the airline has moved the Supreme Court against the orders of the Delhi High Court, during the proceedings. 

A single-member bench of the Delhi High Court had allowed the airline’s lessors to access and inspect the aircrafts the airline had leased from them. This decision was upheld by the division bench of the high court and now the airline has approached the Supreme Court regarding the same. 

The report stated that Srinivasan informed the NCLT that Go First has sought the apex court in an attempt to get some clarity about the orders passed by the high court and the NCLT regarding the status of about 30 aircraft and their engines. 

Recently in July, the NCLT rejected lessors’ pleas to restrain Go First from commercial flying, stating that since the aviation regulatory body DGCA (Directorate General of Civil Aviation) has not deregistered the airline, the aircraft are available for flight resumption. The tribunal further clarified that Go First will retain the physical possession of the aircraft and engines and the lessors cannot make any claims on that. 

The tribunal also denied the lessors’ plea for inspection of the leased aircraft and engines. It stated that the responsibility to ensure the aircraft and engines are functioning at the highest possible efficiency and safety lies with the RP. 

In its 29-page order, the NCLT firmly stated that the physical possession of the aircraft and engines lies irrefutable with the corporate debtor,i.e., the airline. Under Section 14 (1) (d), the applicants don't have the right to claim possession of the aircraft and engines, the bench noted. 

GoFirst airline stopped flight operations on May 3, 2023, and initiated voluntary CIRP (Corporate Insolvency Resolution Process) against itself, claiming that technical difficulties arising due to the non-availability of engines by U.S.-based engine maker Pratt & Whitney made it impossible for the airline to continue operations. 

NCLT admitted the airline’s plea to start insolvency proceedings on May 10. The report noted that earlier this week, the airline’s RP sought approval from NCLT to refund Rs 597.54 crore to about 15.5 lakh passengers who booked travel tickets for flights on and around May 3.