Delhi HC issues contempt notice to bankrupt Go First airline's resolution professional

NEW DELHI: The Delhi High Court has issued a contempt of court notice to the resolution professional (RP) of Go First airline, for disobedience of orders on allowing inspection and maintenance of Go First’s lessors' aircrafts. 

"Prima facie, the orders of this court have been wilfully disobeyed by the respondent/ RP. Issue notice to show cause as to why proceedings of contempt be not initiated...," a single-judge bench of Justice Tara Vitasta Ganju held.

It was alleged by one of the aircraft lessors  DAE (SY22) 13 Ireland Designated Activity Company that the appointed RP for Go First’s insolvency resolution process (accountable for maintaining the insolvent company’s assets and liabilities) had wilfully failed to undertake regular maintenance and monthly inspections of the aircraft and to provide relevant records and documents.

On this, the RP told the Court that there was no wilful disobedience of court orders, and that he was willing to revert to the position regarding the maintenance of the aircrafts.

The matter is listed for further hearing on March 15.

Several other lessors also raised similar issues regarding the non-compliance of orders passed by the court from time to time.

Earlier, the Court had permitted the lessors to engage 24*7 security to protect their aircrafts and directed the RP to share documents related to the maintenance of aircrafts, engines and airframes with its lessors.

According to a report in LiveMint, earlier, the RP had raised the concern that returning the aircrafts to the lessors would render the airline with almost 7,000 employees to look after, "dead".

Go First airline’s troubles began around May last year when it stopped operating flights.

Since then, the airline’s voluntary insolvency resolution plea was accepted by the National Company Law Tribunal (NCLT) and subsequently upheld by the National Company Law Appellate Tribunal (NCLAT).

Thereafter, the airline’s lessors approached the Directorate General of Civil Aviation (DGCA) for deregistration and repossession of 45 planes they had leased to the carrier. However, the same was refused.

The lessors then approached the Delhi High Court against the said denial, terming it "illegitimate".