The Go First insolvency case has reached a critical juncture, with the Delhi High Court scheduled to issue a ruling on a petition filed by three aircraft lessors against the airline.
The petitioners have charged Go First's resolution professional with inadequate maintenance of their assets, a charge that, if upheld, could have far-reaching consequences for the airline's future prospects, according to Mint.
Go First is currently undergoing insolvency proceedings, and it has recently received a bid from Naveen Jindal, the promoter of Jindal Steel and Power Ltd, in his individual capacity.
An adverse ruling by the court could result in the airline being left with an inadequate number of aircraft to resume operations. Additionally, the court may take note of a recent order by the Ministry of Corporate Affairs, which empowers lessors to repossess their aircraft in the event that an airline is grounded and has filed for insolvency.
The petitioners, BOC Aviation (Ireland) Ltd, ACG Aircraft Leasing Ireland, and DAE 13 Ireland Designated Activity Co., have submitted new applications following their discovery of their parked aircraft's poor condition during inspections. They have all accused Go First's resolution professional of failing to maintain their assets.
In response to the petition, the resolution professional has argued that the plea is not maintainable, as the matter has already been settled in previous orders. BOC Aviation has alleged that its aircraft were in a deplorable condition, with inadequate maintenance of landing gear and the main body.
Meanwhile, DAE 13 Ireland Designated Activity Co. has accused Go First of failing to pay staff salaries in August, resulting in poor plane conditions, including a dirty fuselage and corrosion of brakes and other parts.
ACG has raised concerns over missing key components, such as fan blades, in the leased planes and urged Go First to replace them immediately. The court's ruling could have wide-ranging implications for Go First's future, particularly if it is unfavourable.
The airline may be left with insufficient aircraft to resume operations, and the court may take note of the Ministry of Corporate Affairs' recent order, which could empower lessors to repossess their aircraft. In the context of the airline's ongoing insolvency proceedings, the outcome of the case is of paramount significance.