If lessors are allowed to take possession of GoFirst aircraft, it would prove to be the death knell for the airline and leave its over 7,000 employees jobless, the airline told the Delhi High Court on Tuesday, May 30.
Representing GoFirst, renowned senior advocate Harish Salve said asking the Delhi HC to direct DGCA to deregister the aircraft would be contrary to law.
The lessors had moved the court seeking directions to the Directorate General of Civil Aviation (DGCA) to approve their requests for deregistering aircraft after the National Company Law Appellate Tribunal (NCLAT) upheld the admission of GoFirst's voluntary insolvency plea and affirmed the imposition of a moratorium.
This had given a lifeline to the airline which is working on a plan to revive its operations after half of its fleet were grounded due to "faulty Pratt & Whitney engines" and a delay in supply of fresh engines.
The NCLAT has directed all concerned parties to approach the National Company Law Tribunal (NCLT) to raise their concerns and claims.
Meanwhile, the DGCA has temporarily halted the lessors' request to repossess planes belonging to the troubled airline. Contrary to initial reports, the decision is not a rejection but rather a precautionary measure due to the airline's ongoing bankruptcy protection proceedings and a freeze imposed by bankruptcy laws on the airline's assets.
This approach grants both parties the freedom to pursue their claims by utilising the appropriate legal channels, specifically the NCLT (National Company Law Tribunal).
The stakes are high for GoFirst, as a potential approval of the deregistration requests could result in lessors taking possession of the aircraft. Such an outcome would deal a severe blow to the airline's chances of survival, leaving its pilots and over 7,000 employees jobless.
(Edited by : Pradeep John)
First Published: May 30, 2023 4:56 PM IST
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