Earlier this month, Go First, which is owned by the Wadia Group, submitted a voluntary insolvency resolution, stating its inability to continue meeting its financial commitments. Consequently, several aircraft lessors have approached the National Company Law Appellate Tribunal (NCLAT) to oppose the airline's insolvency proceedings.
In response, Accipiter Investments Aircraft 2 Ltd has lodged a writ petition against the central government and others with the Delhi High Court, as reported by PTI. The lessor is requesting the court to instruct aviation regulator DGCA to deregister its aircraft that is currently under lease with Go First.
In addition to this, Accipiter Investments Aircraft has taken its case to the NCLAT. Eos Aviation 12 (Ireland) Ltd, another aircraft lessor, has also lodged a petition against Go First with the NCLAT. The petitions from both companies are due to be reviewed by the appellate tribunal on Wednesday.
Due to a moratorium on Go First's financial commitments and asset transfers, lessors have been prevented from deregistering and reclaiming their aircraft leased to the airline. In total, six entities have filed with the NCLAT in relation to the Go First case. On Tuesday, the appellate tribunal listened to the plea from Ireland-based Engine Leasing Finance.
SMBC Aviation Capital Ltd, GY Aviation, and SFV Aircraft Holdings -- three aircraft lessors -- have brought their case against Go First's insolvency resolution proceedings to the NCLAT. Collectively, these three lessors have leased approximately 21 aircraft to Go First. The NCLAT is expected to deliver its verdict on these three lessors' petitions on May 22.
On Monday, a two-member bench held its decision after concluding hearings on the three petitions. During these proceedings, senior advocate Arun Kathpalia, representing SMBC Aviation, contended that the company had terminated its lease prior to Go First initiating its Corporate Insolvency Resolution Process (CIRP).
Kathpalia emphasized that the lease agreement was nullified and, according to the Cape Town Conventions, the DGCA has a protocol to cancel the lease within five business days. As India is a signatory, the DGCA is required to implement this without seeking consent from Go First. Kathpalia added, "They cannot fly and operate it."
The National Company Law Tribunal (NCLT) approved Go First's voluntary insolvency resolution plea on May 10. Since then, several lessors have approached the aviation regulator DGCA, seeking deregistration and repossession of 45 planes belonging to Go First.
