Go First lessors demand aircraft deregistration post bankruptcy code changes
announced specific exemptions from the Insolvency and Bankruptcy Code (IBC) for aircraft, engines, and related parts. Notably, Section 14(1) of the IBC, which enforces a moratorium on insolvency proceedings, would no longer apply to transactions, arrangements, or agreements concerning aircraft, aircraft engines, airframes, and helicopters.
The lessors are anticipated to leverage this amendment in tribunals and courts to repossess their assets from the airline. However, potential delays could arise due to changes in the composition of the National Company Law Tribunal (NCLT) bench handling the matter.
Additionally, the single bench of the high court has reserved its judgment in the maintenance case initiated by three lessors. A ruling on this matter is expected in the coming week.
On the same day, the National Company Law Appellate Tribunal (NCLAT) granted Bluesky 19 Leasing Company Ltd, a lessor of Go First, the right to inspect its aircraft. This development marks the third lessor to secure this inspection right.
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