Lessors Want To Defeat Go First's Insolvency Process, IRP Says
Go First is using the IBC process to retain control over aircraft, lessors argue before the NCLAT.
The notice of lease termination by the lessors was filed on the midnight of May 2—soon after the voluntary insolvency petition was filed by Go First, Senior Advocate Ramji Srinivasan told the National Company Law Appellate Tribunal on Monday. Srinivasan is representing the Interim Resolution Professional of the airline.
The notices were only meant to defeat the purpose of insolvency proceedings, he argued. The lessors—SMBC Aviation, SFV Aircraft Holdings, and GY Aviation—did not issue termination of lease notice, even when the dues of the airline to them were increasing. But, the moment Go First announced its plan to proceed with insolvency, the notices were issued, Srinivasan highlighted to the court.
The attempt of the lessors, he said, was to drag the matter before the NCLT. They tried to squander time before the tribunal, so that the question of possession of planes goes to the Directorate General of Civil Aviation instead, Srinivasan argued.
Srinivasan also emphasised that Go First's situation would improve significantly once Pratt and Whitney comply with the directions of the Singapore arbitral tribunal, to supply 10 engines to the airline every month till December 2023.
Previously, the lessors had argued that the airline was only using the insolvency proceedings to hold onto the aircraft, and that it is a malicious attempt to delay the exercise of rights by the lessors.
The lessors further submitted that they took the help of Air India to deploy security over the aircraft. This was done to stop Go First from having any contact with those planes. However, once the moratorium was declared, the airline deployed its own security and ladders and obstructed the access of lessors over them, the lessors said.
The hearings concluded on Monday, and the NCLAT is likely to pronounce its verdict after May 22.