Delhi High Court Directs Go Air To Provide Access To Aircraft Documents To Lessors

The Delhi High Court has directed the resolution professional of the crisis hit airline Go Air to provide access to documents in relation to the leased aircrafts to various lessors.

Justice Tara Vitasta Ganju also permitted the lessors to contract a “24 hour security service” for all the aircrafts, which are lying parked at various airports, at their own expense.

The court also directed the Directorate General of Civil Aviation (DGCA) to permit the duly verified security personnel or agency appointed by the lessors to access various airports in and around the country where the aircrafts are lying parked.

“The Respondent/RP of Go Air shall continue to maintain the Aircraft as already directed,” the court said.

The court passed the order after the lessors moved applications seeking urgent directions for full and proper access to and inspection of all aircrafts documents, records, including its maintenance or storage preservation records.

The applications were moved in the petitions moved by the lessors seeking de-registration of their aircrafts on lease with Go Air.

On July 05, the court had passed an interim order permitting the lessors to carry out inspection and interim maintenance tasks of their aircrafts twice a month until final disposal of their pleas.

However, the lessors again moved applications seeking modification of the interim order by submitting that a “superficial inspection” permitted by Go Air’s resolution professional was not sufficient without the aircrafts’ documents or records to ensure proper inspection.

“….it has now been more than five months, since the Aircraft were grounded by the Respondent/RP of GoAir. A review of the documents and photographs filed by the Petitioners/Lessors show the evident cannibalization of the Aircraft. The Petitioners/Lessors have made out a prima facie case and it has become necessary for this Court to pass additional directions to protect these highly valuable equipment during the pendency of the present case,” the court said.

About the Petitions

The pleas were moved by lessors namely Pembroke Aircraft Leasing 11 Limited, SMBC Aviation Capital Limited, Accipiter Investments Aircraft 2 Limited and EOS Aviation 12 (Ireland Limited), DAE SY 22 13 Ireland Designated Activity Company, SFV Aircraft Holdings Ire 9 DAC Limited, ACG Aircraft Leasing and GY Aviation Lease 1722 Co Limited. 

It was the case of the lessors that the airline in question had no right to use their aircrafts as the leases concerning them have been terminated. The respondents in the petitions include Union of India and Director General of Civil Aviation.

On May 22, the National Company Law Appellate Tribunal upheld the order passed by NCLT whereby Corporate Insolvency Resolution Process was initiated against Go Airlines (India) Limited. Go First airlines stopped flying from May 03.

NCLAT had rejected an appeal filed by the lessors challenging NCLT’s direction to keep the leased aircrafts intact in the possession of Go Airlines.

Since the lessors had challenged the imposition of moratorium on leased aircrafts when the lease agreement stood terminated prior to CIRP, the NCLAT granted liberty to IRP and the lessors to file applications before the NCLT with respect to their claims relating to the leased aircrafts.

Title: ACG AIRCRAFT LEASING IRELAND LIMITED v. UNION OF INDIA & ORS. and other connected matters

Citation: 2023 LiveLaw (Del) 959

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