Go First crisis: Supreme Court rejects airline's plea, allows lessors to inspect their aircraft

The Supreme Court on Monday rejected crisis-hit Go First's plea against the Delhi High Court order that allowed the lessors to inspect their aircraft they had lent to the airline.    

The apex court said that the lessors own the aircraft, it is their aircraft, and further added that as the matter is pending before a single bench of the Delhi HC, it will not interfere in the case at this point.  

The CJI-bench clarified that the single judge will also decide the jurisdictional issues.   

Earlier, a single-member bench of the Delhi HC allowed the lessors of Go First to access and inspect the planes they had leased to the airline. The order was later upheld by the division bench of the high court, following which the crisis-hit airline moved the apex court. 

On its part, Go First said that the National Company Law Tribunal (NCLT) has the jurisdiction to hear the case, not the high court. The resolution professional said that the Delhi HC order to allow lessors to inspect their aircraft and equipment is interfering in the resolution proceedings where IRP trying to "revive the airline".

On May 3 this year, Go First stopped flying and moved NCLT for initiation of CIRP against it.  On May 10, the NCLT admitted the plea of Go First to initiate voluntary insolvency resolution proceedings. 

On Friday last week, the NCLT directed the RP to submit details of the recent developments and to file an additional affidavit in the next 10 days, including the status of the maintenance of the leased aircraft.

Last week, Go First's RP had asked NCLT approval to refund Rs 597.54 crore to around 15.5 lakh passengers who booked tickets for travel on and after May 3.  Following this, the NCLT had issued notice to the lenders and insolvency regulator IBBI.