Mumbai, Oct 5 Counsels of aircraft leasing firms and Go First are expected to spar over deregistration of the grounded airline’s aircraft in the Delhi High Court on Thursday.
The Ministry of Corporate Affairs’ notification on Wednesday disallowing a moratorium for leased aircraft has come as a shot in the arm for lessors, who are trying to recover the leased aircraft.
While lessors will submit a plea for a quick 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.
Go First suspended operations on May 2 following a cash crunch resulting from grounded planes and faulty engines. Lessors terminated leases of 54 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 argued before the Delhi High Court that they are entitled to deregistration of the planes since the leases were terminated prior to declaration of moratorium.
Nitin Sarin, managing partner of Sarin & Co, termed the Corporate Ministry’s notification as a good move. Speaking about the Go First matter, Sarin explained that it will be argued before the court by the lessors. “However, ultimately, it will be the court’s decision,“ he said.