Delhi High Court issues contempt of court notice to Resolution Professional of Go First Airlines

The Delhi High Court recently issued contempt of court notice to insolvency resolution professional (RP) of Go First Airlines after it was found that the aircrafts lent to the airlines were not being maintained properly [DAE (SY 22) 13 Ireland Designated Activity Company v Go Airlines (India) Ltd]. .Justice Tara Vitasta Ganju found the resolution professional prima facie guilty of having disobeyed the court’s directions for maintenance of the aircrafts and asked him to explain why contempt proceedings should not be initiated against him."It is clear that the Respondent/RP is unable to undertake regular maintenance of the Aircrafts. The directions; (a) to provide access and the inspection of all the Aircrafts records and documents; (b) monthly inspection of the Aircrafts from August/September, 2023 onwards; and, (c) carrying out the maintenance and obligation with respect to the Aircrafts in accordance with the guidelines as specified are not being adhered to by the Respondent/RP. Thus, clearly, the Court Orders are not being complied with, by the Respondent/RP,” the Court said. .The counsel appearing for the RP said that they are willing to provide lessors access to the aircrafts so that they can maintain them themselves.The counsel appearing for the lessors sought some time to come up with instructions on this concession.Therefore, the Court adjourned the case to March 15..Justice Ganju passed the order while dealing with the contempt petitions filed by several aircraft lessors against the RP alleging violation of Court orders.It was contended that the lessors have not been provided with the records and the documents of the aircrafts for parts removed or the record pertaining to storage of the aircrafts, maintenance history and updated technical records.The Court was told that the maintenance of the aircrafts was not being carried out in terms of the directions passed by the Court and no inspection has been caried out since August/September last year.However, the RP said that there has been no willful disobedience of the judgments and orders and all steps have been taken to effectuate compliance with the Court's directions. The RP further said that due to circumstances outside their control, the compliance with the orders could not be done..After considering the case, the Court rejected the RP’s contention that the aircrafts could not be taken care of properly because of reduced work force on account of non-payment of salaries since April, 2023.“Quite clearly when making submissions on 12.07.2023, the Respondent/RP was well aware of his reduced work force on account of non-payment of salaries since April, 2023. In these circumstances for the Respondent/RP to contend otherwise has led to cannibalization or deterioration of the Aircrafts on account of no proper maintenance in accordance with the applicable guidelines.”It, therefore, issued the contempt notice..Senior Advocates Kevic Setalvad and Jayant Mehta along with advocates Nimish Vakil, Pai Amit, Abhiyudaya Vats, Anshul Syal, Bhavana Duhoon, Nitin Sarin, Mukul Katyal, Priyam Jinger, Chiranjivi Sharma and Ameya Gokhale appeared for various aircraft lessors. Senior Advocate Satvik Varma along with Ajay Kumar from KLA appeared for the Bank of China.Advocates Diwakar Maheshwari, Shreyas E, Pratibha Agarwal and Pratiksha Mishra represented the RP of Go Air..[Read Order]