Delhi HC refuses stay on lessors inspecting Go First aircraft

livemint.com:

Go First's resolution professional (RP) challenging an earlier order that allowed lessors to inspect the airline's aircraft and their parts at regular intervals.  Lessors can now carry out inspections regularly. Additionally, the bench comprising chief justice Satish Chandra Sharma and justice Sajeev Narula has given the Directorate General of Civil Aviation (DGCA) 15 days to grant approvals to the airline for resuming operations. On 5 July, a single-judge bench of the Delhi High Court permitted the lessors of the airline to inspect and carry out maintenance work of Go First's 30 aircraft within the next three days.

A bench led by justice Tara Vitasta Ganju had authorised the lessors to conduct maintenance tasks on the engines and components of all aircraft twice a month until the disposal of the writ petitions. During the hearing, the counsel representing the lessors argued that DGCA should not consider the airline's application until the final hearing commences on 3 August. The lessors argued about the expiry of the lease agreement and said that rules do not permit the airline to retain possession of the aircraft.

The lessors added that the Corporate Insolvency Resolution Process (CIRP) cannot compel the renewal of the lease contract. Lessors, including Pembroke Aircraft Leasing 11, SMBC Aviation Capital, Accipiter Investments Aircraft 2, Eos Aviation 12 (Ireland), DAE SY 13 Ireland, SFV Aircraft Holdings Ire 9 DAC Limited, ACG Aircraft Leasing Ireland Ltd, and GY Aviation Lease 1722 Co. Ltd had approached the high court to deregister the leased aircraft.