The NCLT on June 5 directed the IRP of Go First to file a reply within one week over the petitions filed by three lessors seeking possession of their aircraft and engines from the Wadia group firm, which is currently going through the Corporate Insolvency Resolution Process (CIRP).
A two-member NCLT bench directed the IRP (interim resolution professional) to file a reply within a week and a rejoinder, if any, by the lessors over the petitions filed by three lessors — BOC Aviation (Ireland), Jackson Square Aviation Ireland and Engine Lease Finance BV.
The National Company Law Tribunal (NCLT) has directed to list the matter on June 15 for the next hearing.
"IRP is directed to file a reply within a week, with a copy to applicants. List this matter for hearing on June 15," said the NCLT.
During the proceedings, counsel appearing for lessors requested the tribunal to pass an interim order, directing the IRP not to use their aircraft and engine till the disposal of their application. Senior advocate Arun Kathpalia, representing Jackson Square Aviation Ireland, which has leased eight aircraft to Go First, submitted that the Wadia group firm has been defaulting payment from 2021 and had served a default notice in August 2022.
According to him, out of eight aircraft four are under repair for the last few years. It has already terminated the contract on May 3 before the initiation of CIRP against Go First.
He questioned the possession of aircraft by Go First and said that even prior to the moratorium, the process of return of aircraft had started.
Engine Lease Finance BV leased four engines to Go First and sought permission from the NCLT for their inspection after the termination of the lease. It also submitted that the moratorium does not apply to its assets.
Earlier, the NCLT on May 10, 2023, admitted the plea of Go First to initiate voluntary insolvency resolution proceedings and appointed an interim resolution professional (IRP) to suspend the board of the company.
Replying to it, IRP's counsel said aircraft are the core of Go First's business and it cannot be run as a "going concern" if they are taken away. He sought time to file responses to the lessors' plea.
Senior advocate Shyam Divan representing IRP said a Committee of Creditors (CoC) of Go First would be formed soon and it is likely to have its first meeting next week.
The IRP has to take stock of so many things, which are happening around.
Meanwhile, the tribunal also dismissed the insolvency plea filed by one operational creditor against Go First, observing that CIRP has already been initiated against the air carrier.
It has asked SS Associate Services, which was providing courier services to Go First to approach the IRP and file its claims there.
The lessors have approached the NCLT after the appellate tribunal NCLAT had last month directed them to approach the insolvency tribunal over issues regarding the moratorium on their planes.
This was challenged by the lessors before the National Company Law Appellate Tribunal (NCLAT), which had on May 22 upheld the NCLT order and directed the aircraft lessors and IRP of the Wadia group firm to approach the NCLT over a moratorium over the planes, whose lease was terminated before the insolvency.
Disposing of their pleas through a 40-page-long common order, the NCLAT said lessors are at "liberty to file" appropriate application before the NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with "appropriate pleadings and material" regarding their claims.
"The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with the law," the NCLAT had said.
