Go First Insolvency: Suspended Board, Resolution Professional File Caveats Before Supreme Court
The caveats have been filed against GY Aviation Lease, Engine Leasing Finance BV, SMBC Aviation Capital and SFV Aircraft Holdings.
The suspended board of Go First Ltd., led by Varun Berry, has filed caveat petitions against four lessors before the Supreme Court.
A caveat ensures that the party filing it is heard when an appeal is heard by the court. The caveats have been filed against GY Aviation Lease, Engine Leasing Finance BV, SMBC Aviation Capital, and SFV Aircraft Holdings.
Since the voluntary insolvency application was filed by Go First through its board, it is apprehended that the admission of the application before the National Company Law Tribunal itself may be challenged by the lessors.
This apprehension has prompted the board to file a caveat in the matter.
The interim resolution professional appointed in the case, Abhilash Lal, has also filed caveat petitions against GY Aviation Lease, Engine Leasing Finance BV, SMBC Aviation Capital, and SFV Aircraft Holdings.
On Monday, the National Company Law Appellate Tribunal dismissed the appeal by Go First's lessors against the airline's admission to insolvency. As a result of the NCLAT's order, the moratorium imposed by the tribunal is in operation, because of which the lessors cannot take possession of their aircraft.
The lessors in the matter had argued before the NCLAT that the airline was only using the insolvency proceedings to hold onto the aircraft and that it was a malicious attempt to delay the exercise of rights by the lessors.
On May 10, the Delhi bench of the National Company Law Tribunal admitted Go First into insolvency.
The airline had filed a voluntary insolvency application on May 2, citing a severe fund crunch. It attributed its insolvent state to U.S. engine-maker Pratt & Whitney's "defective and failing engines".