Aircraft Lessors Seek Deregistration of Planes from Go First, Approach Delhi High Court

Lessors Argue for Deregistration of Aircraft in High Court

Several aircraft lessors of Go First have presented their case before the Delhi High Court, seeking the deregistration of their planes from the crisis-hit airline. The lessors have challenged the decision of the Directorate General of Civil Aviation (DGCA) to deny deregistration, deeming it “illegitimate.” Justice Tara Vitasta Ganju presided over the arguments put forth by the lessors, scheduling the next hearing for May 30 to allow the respondents to present their submissions. The court has also instructed all parties to file written submissions before the next hearing.

Financial Restrictions and Legal Disputes Hamper Deregistration

The lessors, including Accipiter Investments Aircraft 2 Limited, EOS Aviation 12 (Ireland) Limited, Pembroke Aircraft Leasing 11 Limited, and SMBC Aviation Capital Limited, are unable to deregister and reclaim their aircraft due to the financial obligations and asset transfer restrictions imposed by the insolvency resolution proceedings surrounding Go First. Despite approaching the DGCA for deregistration, their requests have been rejected without any communication from the regulatory authority. The lessors discovered the status of their applications through the DGCA’s website.

The lawyers representing the lessors argue that the aircraft is their property and assert that an interim resolution professional (IRP) does not possess the authority to seize assets belonging to third parties. They contend that the issue of deregistration falls under Article 226 of the Constitution, and the jurisdiction lies with the Delhi High Court rather than the National Company Law Appellate Tribunal (NCLAT). Furthermore, they highlight that the DGCA is obligated to deregister the aircraft based on the Irrevocable De-registration and Export Request Authorisations (IDERA) agreement.

Go First, formerly known as GoAir, recently filed for voluntary insolvency resolution, which was approved by the National Company Law Tribunal (NCLT). As a result, the airline suspended its operations from May 3. With multiple lessors seeking deregistration and repossession of the leased planes, the legal dispute adds further complexity to the airline’s insolvency proceedings.