In a recent development, the Delhi High Court has instructed the Resolution Professional (RP) overseeing the crisis-hit Go First to submit an affidavit in response to a lessor’s plea for contempt action. The lessor has accused the RP of non-compliance with the court order, hindering the inspection and maintenance of the aircraft.
Justice Tara Vitasta Ganju emphasized the imperative nature of complying with court orders, highlighting that failure to do so may necessitate further legal actions. The court underscored the significance of maintaining the aircraft, considering them as crucial assets in this case, and warned of the potential detriment if neglected.
Go First crisis: Affidavit deadline and future hearing
The court has set a deadline for the RP to file the affidavit by December 10, making it explicit that the court’s orders must be followed meticulously. The Go First case is scheduled for the next hearing on December 12, where the court will assess the compliance status.
Lessor allegations and multiple grievances
The court is addressing a petition by one of the lessors, DAE (SY 22) 13 Ireland Designated Activity Company, seeking contempt proceedings against the RP. The lessor alleges inadequate maintenance, withholding of necessary documents, and non-compliance with directed inspections. Several other lessors have orally raised similar concerns during the proceedings.
Challenges Faced by Go First and RP’s Response
Senior advocate Kevic Setalvad, representing the lessor in the contempt plea, argued that despite the court’s order for maintenance, the condition of the leased airplanes was deteriorating. RP, represented by senior advocate Neeraj Kishan Kaul, acknowledged facing challenges due to the grounded status of the airline, manpower issues, and financial constraints. Kaul committed to filing an affidavit outlining compliance details and challenges faced.
The high court had earlier allowed lessors to engage security personnel for protecting their idle aircraft. Additionally, it had directed the RP to share maintenance-related documents with lessors. However, the RP had expressed concerns that returning aircraft to lessors would render the airline “dead,” considering the ongoing insolvency resolution proceedings.
Ongoing dispute and the way forward
The lessors, unable to deregister and reclaim their leased aircraft due to the moratorium in insolvency resolution proceedings, have approached the court for relief. The high court is actively addressing multiple grievances raised by different lessors, seeking a resolution to the complex challenges faced by Go First in its grounded state since May 3.
(With PTI Inputs)