The Delhi High Court will hear aircraft leasing companies’ plea for deregistration of Go First aircraft on October 19.
Armed with a favourable notification from the Ministry of Corporate Affairs, the lessors pressed for the release of the planes leased to Go First during a hearing on Thursday.
However, counsels of the airline’s committee of creditors and resolution professional sought time to examine the notification that was issued on Wednesday evening. The court accepted the plea and posted the matter for hearing on October 19.
Ministry’s notification
The notification disallows moratorium for leased aircraft and that has come as a shot in the arm for lessors who are trying to recover the planes leased to Go First.
While lessors are seeking deregistration, Go First is expected to oppose the plea.
A senior Go First executive said the notification will not impact the airline. “Notifications are always prospective - as a rule,” he said.
Background
Go First suspended operations on May 2 following a cash crunch resulting from grounded planes and faulty engines. Lessors terminated leases of 49 aircraft immediately afterwards and have been fighting against the airline in the National Company Law Tribunal and the Delhi High Court, following declaration of moratorium on May 10.
Lessors have been arguing before the Delhi High Court that they are entitled for deregistration of the planes since the leases were terminated prior to declaration of moratorium.
‘Good move’
Nitin Sarin, Managing Partner of Sarin & Co, termed the Corporate Ministry notification as an extremely good move. Speaking about Go First matter, Sarin explained that it will be argued before the Court by the lessors. “However, ultimately in this matter it will be the Court’s decision,“ he said.