Yesterday, the National Company Law Tribunal (NCLT) declined to enjoin Go First’s resolution specialist from using the aircraft that six leasing companies had leased to the company.
The aircraft leasing companies approached a bench of judicial member Mahendra Khandelwal and technical member Rahul Bhatnagar seeking an order preventing Go First from commercially operating or flying the aircraft owned by the lessors.
“It is important to note that the aircraft have not been deregistered by the Directorate General of Civil Aviation (DGCA), so the Corporate Debtor may use them to resume operations. The order stated that as long as the aircraft/engines are registered, they may be used for flying or operating in accordance with the safety standards established by the regulator to maintain the corporate debtor as a going concern.
The tribunal referred to its order from May 10 in which it directed the interim resolution professional to maintain the airline company as a going concern and admitted the company to insolvency proceedings on its own motion.
The order that was passed stated, “Therefore, the aircraft shall be with the airline company and shall be operated by it.
The leasing companies were not permitted by the tribunal to inspect their engines or aircraft.
The tribunal stated that allowing inspection would only serve as a hindrance to the resolution professional’s ability to effectively carry out his or her duties, which include safeguarding and maintaining the engines at the required levels of efficiency and safety.
The tribunal instructed the resolution specialist to guarantee that the assets, engines, and aircraft are kept in the best possible condition.
Source- Travel biz