 "NCLAT to pass crucial orders in Go First insolvency case on Monday")
The National Company Law Appellate Tribunal(NCLAT) is set to pass orders on the plea by four lessors of Go First against the National Company Law Tribunal (NCLT), Delhi order admitting the airline’s insolvency plea.
The order on Monday would decide if lessors are allowed to take possession of the aircraft or if the planes remain under the airline's control.
Civil Aviation Minister Jyotiraditya Scindia had said on May 18 that the airline’s insolvency matter is "not a great thing for aviation" and the ministry is committed to helping the cash-strapped airline.
Senior advocate Maninder Singh, appearing for the airline, had told NCLAT that an impression was being created that there was something wrong and malicious about voluntary insolvency.
The Delhi Bench of the NCLT had earlier accepted Go First’s insolvency plea, resulting in the airline being put under a moratorium in accordance with the IBC.
The NCLAT is set to hear SMBC Aviation Capital, SFV Aircraft Holdings, GY Aviation Lease, and Engine Leasing Finance appeal against the NCLT order.
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SMBC Aviation Capital had told the tribunal that the insolvency application by Go Air is 'malicious' and a 'smokescreen'. They also said that the aircraft in the possession of Go First are their assets, which they are not able to access.
Meanwhile, SFV Aircraft Holdings had said, “They may tinker with our planes, may use parts from my planes to service other planes.”
The resolution professional of Go First had told the appellate tribunal that if the airline was allowed to operate, around 80 engines from Pratt & Whitney would “change the fortunes of the company”.
The airline had told the NCLT it had won an arbitral award in Singapore against Pratt & Whitney (P&W), directing P&W to supply 10 serviceable engines by April 27 this year and 10 serviceable engines each month till December 2023.
SMBC Aviation Capital told the court in a submission on May 11 that the Indian aviation sector is being seen as a risky jurisdiction in light of the fate of Kingfisher and Jet Airways. "Due to such difficulties, lessors and international aircraft owners see India as a risky jurisdiction for aircraft leasing. Therefore, Indian operators have to pay a premium to take aircraft on lease. Thus, the admission of the petition (of Go First) will further shake the confidence of the International Aviation Industry," SMBC told the appellate tribunal.
The bench of Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra will pass an order on Monday morning.