 "Go First")
The lessors of Go First on Friday told the National Company Law Appellate Tribunal (NCLAT) they wanted the status quo on the aircraft, meaning nobody will be able to touch the planes until the tribunal gives the final order.
The planes are in the possession of the airline.
The next hearing is on Monday.
Senior advocate Arun Kathpalia, appearing for SMBC Aviation Capital, a lessor, said the insolvency application by Go First was “malicious” and a “smokescreen”.
He said the aircraft in the possession of Go First were SMBC’s assets, which it was not able to access.
“They (Go First) are using the National Company Law Tribunal’s (NCLT’s) order to hold my assets. This was not the purpose of the Insolvency and Bankruptcy Code (IBC),” he told the court.
He argued there was no reasonable time given to them to be heard.
“We are owed Rs 700-800 crore. Give us reasonable time to file a Section 65 application under the IBC (malicious intent for filing insolvency application),” he said.
The court at this juncture asked the lessors: “What kind of interim order do you want? This (matter) requires hearing.”
Replying to this, Kathpalia said they were seeking the status quo on the aircraft.
“They (Go First) can’t fly so why are they hanging on to the aircraft? There is $200,000 of maintenance cost on an airline alone and $10 million for 50 aircraft,” he argued.
The lawyer appearing for the interim resolution professional said the application of malicious intent could have been filed at the NCLT itself because such an application could be filed even after the insolvency process had started.
At this point Kathpalia said: “If they start to cannibalise an aircraft, where will I go?”
Meanwhile, Go First told the appellate tribunal there was no default to financial creditors till the NCLT order, but there was now a default of Rs 11 crore.
Senior advocate Maninder Singh, appearing for the airline, said an impression was being created that there was something wrong and malicious about voluntary insolvency.
The Delhi Bench of the NCLT on Wednesday accepted Go First’s insolvency plea, resulting in the airline being put under a moratorium in accordance with the IBC.
All or certain legal remedies against debtors are suspended during a moratorium. This means lessors of Go First would not be able to take possession of the aircraft until the NCLAT passes an order.
SMBC Aviation Capital filed an appeal against the NCLT order on Wednesday. Two other lessors (SFV Aircraft Holdings and GY Aviation Lease) also filed an appeal against the same order on Thursday.
SFV Aircraft Holdings said, “They may tinker with our planes, may use parts from my planes to service other planes.”
