In a big relief for Go First, the Delhi High Court on July 5 refused to direct India's aviation regulator to re-register the cash-strapped airline's aircraft. The court also allowed lessors to access the aircraft they leased to Go First to carry out maintenance at least twice a month while the airline has been restricted from removing any parts from the planes in question.
The court order noted that there is no denying that aircraft are valuable and sophisticated. With a view to addressing potential losses, petitioners shall be permitted by the Directorate General of Civil Aviation (DGCA) to access the airport and inspect the aircraft.
The order came against the backdrop of Go First’s eight lessors moving the Delhi High Court seeking deregistration of aircraft by DGCA. They argued that the lease had been terminated prior to the initiation of the insolvency process. They added that the regulator was bound to deregister aircraft on the filing of termination requests by lessors.
DGCA, on the other hand, informed the court that it was not processing termination requests due to a
moratorium placed on Go First on account of insolvency proceedings. The high court had reserved orders on the plea by lessors on June 1.
Earlier on May 10, National Company Law Tribunal (NCLT) had allowed the initiation of voluntary insolvency proceedings by Go First, and the order was upheld by the National Company Law Appellate Tribunal (NCLAT) as well on May 22.
During today’s hearing, lessors told the court that Go First has submitted a plan to fly the aircraft in question, which the DGCA is considering. The court, however, observed that its understanding is that these planes can't fly.
Separately, the aviation regulator on July 4 started the
special audit of the facilities of Go First, which has sought approval for restarting operations. A team of officials from the DGCA started the special audit of the facilities of Go First in Mumbai, an airline executive told PTI.
The audit of the facilities will be done on Wednesday also. On Thursday (July 6), the regulator will audit the airline's facilities in Delhi, the executive said. The executive also said the regulator is likely to submit the audit report on Thursday itself.
