Planes not being maintained is a problem for everybody: Delhi High Court in Go First dispute

The Delhi High Court on Tuesday asked the Resolution Professional (RP) of the grounded Go First Airlines to file a response to a lessor’s allegations that leased aircraft were not being maintained despite court orders..One of the companies that had leased out some aircraft to Go First moved a contempt petition alleging that the orders passed by the Court for the maintenance of the planes and supply of documents to the lessors was not being complied with. During the hearing, Justice Tara Vitasta Ganju said if the aircraft are not maintained, that would be to the detriment of everybody. “So if the aircraft is not being maintained, that is a problem for everybody,” the Court said..However, after Senior Advocate Neeraj Kishan Kaul, who represents the RP, opposed issuance of contempt notice and instead offered to file an affidavit to respond to the allegations, the Court asked for the same to be filed by December 10."It goes without saying that orders of this Court passed from time to time are required to be complied with," Justice Ganju added before listing the contempt plea for hearing on December 12. While the contempt petition was filed only by one company, other lessors also told the Court that they were facing similar issues. However, in the interest of conclusion of the matter, they were not moving separate petitions, they said. .Go First is presently undergoing insolvency proceedings. The airline had moved the National Company Law Tribunal (NCLT) in Delhi in May this year to initiate the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC). The aircraft lessors then moved the High Court for the de-registration of their aircraft which were with Go First.In October, the Court allowed the lessors to hire a 24-hour security service for their 54 planes which were leased out to Go First Airlines. It had also ordered the RP to provide access to documents relating to the aircraft. Earlier, on July 5, the High Court had allowed the aircraft lessors access to the planes that they had leased out to Go First Airlines to carry out maintenance work on them..On Tuesday, Senior Advocate Kevic Setalvad, who appeared for one of the lessors, submitted that no maintenance was taking place and that documents were not being provided. “The urgency of this situation is greater to the extent that aircraft need to be maintained. If the RP, who is supposed to be protecting the aircraft, refuses to do so, in the teeth of your Lordship's order, I do believe some action needs to be taken,” Setalvad argued.The submission from Setalvad came after Kaul opposed the filing of the contempt plea, arguing that the more the matter gets prolonged, the more such problems will come in. “The airline is not flying. In a matter like this, it would be best that I complete my arguments. The airline is grounded, the manpower shortage is there, revenue shortage is there; documents being collated, given; maintenance, all are an issue,” Kaul submitted.Meanwhile, arguments on the petitions filed by the lessors were also made on Tuesday. Kaul resumed his arguments in the batch matter after a brief hearing in the contempt plea. The matter is listed on Wednesday as well for further arguments.