Go First Insolvency: IRP Asked To Reply To Lessors' Pleas For Repossession Of Aircraft, Engines
NCLT asks Go First's IRP to file a reply to a batch of pleas filed by three lessors seeking repossession of planes, engines
The National Company Law Tribunal has asked Go First’s interim resolution professional to file a reply to a batch of applications filed by three lessors seeking to restrict the airline from using their aircraft. These lessors include Jackson Square Aviation Ireland Ltd., Engine Lease Finance B.V., and BOC Aviation Ireland Ltd.
The lessors submitted before the bench that they terminated the lease agreements, leaving the airline with no right over the planes and the engine. It was further submitted that this termination was done due to a default of payments on the part of Go First since 2021.
Jackson Square Aviation Ireland Ltd. argued that the IRP should not use the planes for commercial purposes as the lease agreement was terminated before the moratorium was declared by the NCLT. The lessor submitted that eight aircraft were leased by it to the airline but currently, four of them are not functional. This means that the airline has neither a right nor use of those aircraft, the lessor submitted.
The IRP said before the bench that they are yet to file a reply and since there is no urgency to do so currently, they should be given a period of two weeks. It was further submitted on his behalf that it is the IRP’s responsibility that the airline functions smoothly but that cannot happen without using the aircraft for commercial purposes.
The IRP also said that if the default of payment was continuing on the part of the airline for a long time, why was the termination of lease done only after the airline initiated the insolvency proceedings.
Engine Lease Finance B.V. submitted before the bench that being the lessors of the aircraft engines, its prayer is to get an opportunity to inspect the engines. The lessor also submitted that they, too, terminated the lease agreements with the airline due to default of payment.
The NCLT bench has asked the IRP to file a reply to the applications and the matter will now be heard on June 15.
The NCLT admitted Go First into insolvency on May 10, 2023. Thereafter on May 22, 2023, the NCLAT upheld the decision of the NCLT. The appellate Tribunal had also given the lessors the opportunity to move to NCLT with any relevant applications in the matter.