Delhi HC issues showcause notice to Go First resolution professional on maintenance of aircraft

The Delhi High Court on Thursday issued a showcause notice to Go First resolution professional Shailendra Ajmera as to why contempt proceedings should not be initiated against him for non-compliance with its orders. The lessors of the bankrupt aircraft filed a case in the court noting that he had defied the court orders regarding the maintenance of their aircraft.

The HC also asked parties to work out the modalities to look for a solution in this regard.

Last week, the Delhi HC noted that Ajmera was unable to maintain the aircraft as per its records. Justice Tara Vitasta Ganju told the RP to tell the court on March 6 if they will hand over the maintenance of the aircraft in question to a third-party facility or the lessors.

The court warned the RP that it may issue him a notice in the contempt petition if a consensus is not reached on the issue.

This was on a plea of contempt filed by lessor DAE (SY22) 13 Ireland Designated Activity Company in November last year against the RP for not complying with the court's orders to provide maintenance records to the lessors.

Last week, 10 out of 14 lessors in the case supported the plea for contempt proceedings against the RP.

In December, Ajmera told the court that aircraft lessors have proposed a third-party agency to provide documentation and maintenance of the aircraft.

He said that certain aircraft lessors, namely SMBC Aviation Capital, Aviation Capital Group, Jackson Square Aviation, and EOS Aviation (cumulatively owning 23 aircraft), held in-person meetings with them on November 9 at Mumbai, wherein the said lessors proposed a third-party agency as the MRO/CAMO (Maintenance, Repair, and Overhaul/Continuing Airworthiness Management Organisation) tasked to provide aircraft documentation and undertake maintenance of the aircraft.

In February this year, the National Company Law Tribunal (NCLT) extended the insolvency process of the grounded airline Go First by 60 days after Ajmera of the airline told the tribunal that some parties have expressed interest in taking over the carrier.

Go First filed for voluntary insolvency on May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC), and on May 10, the NCLT admitted Go First’s insolvency plea. SpiceJet's chairman and managing director, Ajay Singh, and Busy Bee Airways have jointly submitted their bid for Go First airline.

Singh has submitted the bid in his personal capacity along with Busy Bee Airways Private Limited. SpiceJet will serve as an operating partner for the new airline and provide staff and services, the company said. The airline will be the operating partner for the new airline, providing staff and services.