The National Company Law Tribunal (NCLT) has rejected the plea of Go First’s lessors to stop the airline from utilising their leased aircraft for commercial operations. The six lessors had sought to protect their planes from unauthorised access and prevent the airline from using them for commercial purposes, but the NCLT found their claims to be unsubstantiated.

The NCLT clarified that the aircraft leased to Go First are considered the property of the airline, according to the Insolvency and Bankruptcy Code (IBC) and other relevant laws. Consequently, the moratorium imposed on Go First’s property during the insolvency resolution process includes the leased aircraft, and lessors do not have the right to reclaim possession of planes during this period.

The tribunal emphasised that the airline must be maintained as a ‘going concern’, and highlighted that the aircraft are essential for the airline’s continued operations. 

Regarding the lessors’ request to inspect the aircraft and engines, the NCLT upheld its previous order from June 15, which had tasked the Resolution Professional (RP) with overseeing the maintenance of the leased assets. Allowing additional inspections was deemed unnecessary and could impede the resolution process.

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The decision by the NCLT on July 26 comes amidst an ongoing legal battle between Go First and the lessors. The lessors have applied for exemption from the moratorium, claiming they had terminated lease agreements prior to the insolvency proceedings. The court is scheduled to hear these applications on August 4. Additionally, on August 3, the Delhi High Court will hear the lessors’ applications against the Directorate General of Civil Aviation (DGCA) regarding deregistering their aircraft.

With the NCLT’s rejection of the lessors’ plea, Go First can continue utilising the leased aircraft for its operations. The ruling signifies a crucial step in the airline’s efforts to remain operational during this challenging phase of insolvency resolution. As the legal proceedings unfold, industry observers will closely monitor further updates and resolutions that could impact the future of Go First.