Two more Go First’s aircraft lessors – GY Aviation and SFV Aircraft Holding – on Thursday moved the National Company Law Appellate Tribunal (NCLAT) against the order passed by the National Company Law Tribunal (NCLT) allowing initiation of the airline’s voluntary insolvency plea.
SMBC Aviation Capital, which is one of the world’s largest aircraft leasing companies, had moved NCLAT on Wednesday, hours after the Delhi-based Principal bench of the NCLT admitted Go First’s insolvency plea.
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Ireland-based GY Aviation is the largest Go First lessor with 9 aircraft, while SFV Aircraft Holdings has leased out one jet to the Wadia group-owned company.
SMBC Aviation Capital has 5 aircraft on lease with Go First.
The NCLAT on Thursday heard the SMBC Aviation Capital’s petition. The matter was partly heard and a two-member bench would continue the hearing on Friday.
During a hearing at the NCLT last week, several aircraft lessors had opposed Go First’s voluntary insolvency plea.
On Thursday, during the NCLAT hearing, SMBC Aviation Capital, through its counsel Arun Kathpalia, submitted that it has already terminated its lease with Go First before the moratorium and it now wants to repossess those aircraft through insolvency.
“Go First has no rights over the planes, which it does not own,” he said.
Lessors opposing Go First‘s insolvency wanted to file a reply under Section 65 of the IBC, which deals with fraudulent or malicious initiation of proceedings.
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However, “Instead of giving an opportunity, we were denied,” Kathpalia added.
He further said prior to insolvency, the lease with Go First was terminated and it “was prevented from showing it”.