Go First Insolvency: Lessors Seek Directions From Delhi High Court To Retrieve Leased Aircrafts

Lessors of aircrafts that Go First Airlines was using on lease, have now moved to Delhi High Court to seek directions on retrieving back the planes.

Delhi High Court seeking directions to the authorities to release the plane leased to the crisis-hit airline. Besides, two more aircraft lessors have moved the National Company Law Appellate Tribunal (NCLAT) opposing the airline's insolvency proceedings. Accipiter Invesments Aircraft 2 Ltd has filed a writ petition before the Delhi High Court against the Union government and others, according to a lawyer. It has requested the high court to direct DGCA to deregister its aircraft which is currently on lease with Go First. Besides, Accipiter Invesments Aircraft has moved the NCLAT. Another aircraft lessor Eos Aviation 12 (Ireland) Ltd has also filed a petition before the NCLAT against Go First. Both the petitions are listed before the appellate tribunal for Wednesday.

With moratorium on financial obligations and transfer of assets of Go First in the wake of the insolvency resolution proceedings, lessors are unable to deregister and take back the aircraft leased to the carrier.

A total of six entities have moved the NCLAT in the Go First case and earlier on Tuesday, the appellate tribunal heard the plea of Ireland-based Engine Leasing Finance.

The appellate tribunal said it will pass the order on May 22 along with the other three petitions. "Orders on 22.05.2023. Short written notes may be filed within two days by both parties," it said.

Three aircraft lessors - SMBC Aviation Capital Ltd, GY Aviation and SFV Aircraft Holdings -- have moved the NCLAT against Go First's insolvency resolution proceedings. These three lessors have leased out around 21 aircraft to Go First. 

On May 10, the National Company Law Tribunal (NCLT) allowed the voluntary insolvency resolution plea by Go First. So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First's 45 planes.