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This is an archive article published on April 26, 2024

Delhi High Court directs DGCA to deregister aircraft of Go First airline lessors in 5 working days

The Delhi High Court said that the communication letters issued by the DGCA in May last year declining to process the de-registration application of the various aircraft lessors were ‘set aside’.

With these directions, the Delhi high court thereafter disposed of the batch of petitions moved by the lessors seeking de-registration of their aircraft.With these directions, the high court thereafter disposed of the batch of petitions moved by the lessors seeking de-registration of their aircraft. (Representative/ File)

The Delhi High Court on Friday directed the Directorate General of Civil Aviation (DGCA) to process in five working days the pleas of various lessors of the crisis-hit Go First airline seeking de-registration of their aircraft.

A single-judge bench of Justice Tara Vitasta Ganju said while orally pronouncing the judgment that detailed directions have been passed to deregister the 54 aircraft of the lessors.

The high court said that the communication letters issued by the DGCA in May last year declining to process the de-registration application of the various aircraft lessors were “set aside”.

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“The respondent DGCA will forthwith and no later than in the next five working days process the de-registration applications for the aircraft,” the high court said, adding that the order applies to all 54 aircraft.

The court said that all “maintenance tasks” for the aircraft shall be undertaken by the petitioner lessors and authorised representatives “up to and until the time the aircraft are deregistered and exported” in pursuance of the Aircraft Rules.

The DGCA and Airports Authority of India (AAI) shall aid and assist the petitioner lessors and grant them access to the various airports where the aircraft are parked, the high court said. The court further said that the Resolution Professional (RP) of Go Air, the airline, its directors etc., are “restrained from accessing, entering, operating in any manner or flying the aircraft”.

The high court also said that the petitioner lessors are permitted to export the aircraft in accordance with the Aircraft Rules and the Aircraft Act and applicable laws. It directed that the DGCA will facilitate the export by providing the “export certificate of airworthiness and all other documents”.

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With these directions, the high court thereafter disposed of the batch of petitions moved by the lessors seeking de-registration of their aircraft.

A detailed copy of the judgment is awaited.

On May 5, 2023, Justice Ganju in an interim order permitted the lessors to “carry out inspection and all maintenance tasks” of the 30 aircraft “at least twice every month” until their main petitions are finally decided. The RP challenged this order before the division bench of the high court and on July 12, 2023, a division bench had permitted the RP to carry out all “maintenance tasks” of the 30 aircraft parked at various airports after taking due permissions.

On May 10, 2023, the National Company Law Tribunal placed a moratorium on the Wadia Group airline’s financial obligations and recovery of aircraft by lessors which was subsequently upheld by the National Company Law Appellate Tribunal (NCLAT) on April 22.

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