 "Go First")
The Delhi High Court (HC) on Thursday issued a contempt notice to Shailendra Ajmera, the Resolution Professional (RP) of insolvent airline Go First for not maintaining the leased aircraft.
Even though Ajmera has not been asked to be present in the court now, he has been asked to respond as to why contempt proceedings should not be initiated against him.
The RP has also agreed to hand over the task of maintenance of the aircraft to the lessor. The lessor has sought time to respond to this suggestion before the next hearing on March 15.
The court on March 1 observed that the RP was unable to maintain the aircraft, according to its records.
Justice Tara Vitasta Ganju had told the RP to tell the court if they would hand over the maintenance of the aircraft in question to a third-party facility or the lessors.
This was on a plea of contempt filed by lessor DAE (SY22) 13 Ireland Designated Activity Company in November last year against the RP for not complying with the court's orders to provide maintenance records to the lessors.
Ten of the fourteen lessors in the case supported the plea for contempt proceedings against the RP.
The RP told the court in December last year that aircraft lessors have proposed a third-party agency to provide documentation and maintenance of the aircraft.
The RP said that certain aircraft lessors namely SMBC Aviation Capital, Aviation Capital Group, Jackson Square Aviation and EOS Aviation (cumulatively owning 23 Aircraft) held in-person meetings with them on November 9 last year at Mumbai, wherein the lessors proposed a third-party agency as the MRO/CAMO (Maintenance, Repair, and Overhaul/Continuing airworthiness management organisation) tasked to provide aircraft documentation and undertake aircraft maintenance.
It was informed by the aforesaid lessors that once a contract is executed with the proposed MRO, a communication will be issued to the DGCA seeking the required approvals to allow the said MRO to proceed with maintenance activities on the aircraft, the RP told the court.
He also told the court that the lack of operational cash flows has made it impossible for it to retain technical professionals entrusted with the responsibility of maintaining the aircraft.
On February 13, the National Company Law Tribunal (NCLT) extended the insolvency process of the grounded airline Go First by 60 days after the RP of the airline told the tribunal that some parties has expressed interest in taking over the carrier.
Budget carrier SpiceJet's managing director, Ajay Singh, and Busy Bee Airways have jointly submitted a bid of $193.10 million for the airline.
The airline has also received a financial bid from Sharjah-based Sky One Airways, which is lower than the competing bid.
Go First filed for voluntary insolvency on May 2 under Section 10 of IBC, and on May 10, the NCLT admitted Go First’s insolvency plea.
