Go First Crisis: Airline's suspended board files caveats before Supreme Court against aircraft lessors

Go First Crisis: The suspended board of Go First on Tuesday filed caveats before the Supreme Court against four aircraft lessors of the crisis-hit airline. Four caveats have been filed by Varun Berry, the Chairman of the suspended board of Go First through his counsel advocate Pranjal Kishore, as per the information available on the website of the Supreme Court of India.

The lessors are - SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC) - owning around 22 aeroplanes.

The caveat has been filed against the order passed by the National Company Law Appellate Tribunal on Monday, which upheld the order passed by the Delhi bench of the NCLT on May 10.

The Principal Bench of the National Company Law Tribunal (NCLT) admitted the plea of Go First to initiate voluntary insolvency resolution proceedings. It appointed an interim resolution professional (IRP) to suspend the company's board.

A Caveat application is filed by a litigant to ensure that no order is passed against them without being heard.

Berry is also Executive Vice-Chairman and Managing Director of Wadia group FMCG arm Britannia Industries.

The aircraft lessors are opposing the insolvency proceedings against Go First and are seeking repossession of their aeroplanes whose leases were terminated before May 10.

In its order, NCLAT had directed the lessors to approach NCLT regarding the claim of possession and other respective claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency process.

Disposing of their pleas through a 40-page-long common order, the NCLAT said lessors are at "liberty to file" appropriate application before NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with "appropriate pleadings and material" regarding their claims.

"The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with the law," it had said.

So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First's 45 planes.