SC rejects Go First plea against Delhi HC nod to Lessors to Access Planes

New Delhi(India), 07/08/23: The Bar and Bench, of the Supreme Court has denied Go First’s appeal against the Delhi High Court’s ruling allowing aircraft lessors access to the aircraft they had leased to the airline.

A bench consisting of Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Mishra ruled that because the ailing airline had already been presented to the HC, there was no legal basis to halt the continuing proceedings.

On August 3, the airline filed an appeal with the Supreme Court against the Delhi High Court’s judgement allowing lessors to inspect the aircraft. They were also given permission to perform aeroplane maintenance.

Previously, lessors filed applications for plane de-registration, but the Directorate General of Civil Aviation (DGCA) denied them.

Lessors then notified HC that future aircraft leasing would be jeopardised if the (DGCA) did not de-register aircraft whose leases had expired. According to Senior Advocate Mukul Rohatgi, who represents one of the lessors, the compulsory retention of their aircraft has a severe impact on the Indian aviation business.

He further mentioned that, while the civil aviation agency did not outright reject their request for de-registration, it was put on hold due to the continuing ban.

A moratorium is a period of time during which most or all legal actions against a debtor are halted. It begins when a corporation declares insolvency or bankruptcy.

The lessors claimed that the DGCA is required to de-register the aircraft upon their request under the Irrevocable De-registration and Export Request Authorisations (IDERA).

They had previously informed the court that, under Rule 30(7) of the Aircraft Rules, 1937, the Central Government could cancel the registration of an aircraft in India that was subject to the Cape Town Convention without the permission of the aircraft holder if an IDERA holder (lessors) applied for lease cancellation.