Go First Case: Delhi High Court Rules In Favour Of Lessors, Directs DGCA To Deregister Aircraft

The Delhi High Court on Friday directed the Directorate General of Civil Aviation to proceed with the deregistration of aircraft leased to Go First.

According to the court ruling, the Resolution Professional has been mandated to furnish all up-to-date information regarding the aircraft involved in the dispute. Moreover, the court ruled in favour of the lessors, granting them access to their respective aircraft.

The Airports Authority of India has been tasked with coordinating communication between the lessors and relevant stakeholders, regarding the export of aircraft and ensuring compliance with airworthiness standards.

The court also emphasised that lessors who do not intend to export their aircraft have the option to pursue appropriate legal remedies.

The judgment in this case is expected to be uploaded soon, providing further clarity on the court's decision.

Last year, on May 22, the National Company Law Appellate Tribunal upheld the decision of the NCLT, which admitted Go First into insolvency proceedings. The NCLAT had also granted lessors the opportunity to submit relevant applications to the NCLT.

However, several lessors including Accipiter Holdings, Pembroke Aircraft, SFV Aircraft Holdings, ACG Aircraft Leasing, EOS Aviation 12, SMBC Aviation Capital, and DAE SY 22 13 Ireland opted to approach the high court. They sought directives for the Directorate General of Civil Aviation to deregister their aircraft leased to Go First.

The lessors contended that any restriction on their right to repossess the planes should only occur through explicit legal measures, not through actions of the DGCA. They further argued that seeking deregistration of the planes post-lease termination was unrelated to the insolvency proceedings.

They emphasised that the Resolution Professional should not seize property belonging to third parties during the process.