De-register and allow export of all Go First aircraft: Delhi HC to DGCA
The Hindu
Delhi High Court orders DGCA to deregister Go First's fleet, facilitating export, amid ongoing insolvency resolution process.
The Delhi High Court on Friday in its judgment ordered the DGCA to process deregistration of grounded airline Go First’s entire fleet of 54 aircraft sought by various lessors forthwith and no later than within five days and facilitate their export from the country.
The High Court set aside the letters of communication issued by the DGCA to various lessors in May last year where it put into abeyance their deregistration applications. This had followed the National Company Law Tribunal’s decision on May 10 to admit Go First’s plea for voluntary insolvency and consequential moratorium thereby prohibiting adverse actions by its lessors, and other debtors. Following which 14 lessors moved the Delhi High Court.
The Delhi High Court also instructed the DGCA to facilitate export of aircraft from India as well as provide export certificates along with other documents. It also authorised the lessor petitioners to undertake the maintenance of the grounded aircraft till their de-registration and export, while restraining the resolution professional appointed by the NCLT from entering the aircraft as well as removing its parts and documents. Lessors have also been permitted to inspect their aircraft with the court ordering the DGCA as well as the Airports Authority of India to facilitate their inspection and access.
Earlier this month, the NCLT granted an extension for completion of the resolution process till June 4. This was the third extension since November when the 180-day timeline for completion of the resolution process under the Insolvency and Bankruptcy Code (IBC) expired. The maximum time of 330 days allowed under IBC, including any extension or litigation period, failing which a corporate debtor is sent for liquidation also expired on April 4. The next NCLT hearing on the resolution process is on May 13. The RP has received two bids for the grounded airline, which includes a joint bid from SpiceJet CMD Ajay Singh and Ease My Trip Co-Founder Nishant Pitti led Busy Bee Airways. Another bid is from Sky One, an aviation firm headquartered in Sharjah led by Jaideep Mirchandani.
“The de-registration does not alter our plans for the Indian aviation industry. If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” said Mr Mirchandani in response to HC judgment. Mr Pitti said that they will evaluate necessary adjustment to their proposed offer for Go First.
“In my opinion, the HC judgment this will not affect the resolution process as the successful resolution applicant would have had to negotiate agreements with the lessors anyway. Also, the true value in the airline is not in the leased aircraft but its slots, traffic rights and employees, hence none of us could understand the unnecessarily hard battle fought by the Resolution Professional,” said Nitin Sarin, Managing Partner, Sarin & Co, which represented some of the lessors.