Delhi HC Orders DGCA To Allow Access Of Critical Documents To Go First

The Delhi HC has directed the resolution professional of Go First to share crucial aircraft-related documents with its lessors within a week.

These documents encompass records concerning engine and airframe part removal, storage, historical data, online records, and any documents relevant to the airworthiness of the aircraft.

The single bench of the court, hearing the plea by Go First lessors, also ordered the Directorate General of Civil Aviation (DGCA), acting through the Bureau of Civil Aviation Security (BCAS), to grant lessors access to pertinent documents. Additionally, the court ordered security measures to be put in place to enable lessors to inspect the aircraft. It was clarified that while Go First will continue to be responsible for maintaining the aircraft, lessors have the right to inspect the aircraft as part of their agreement. The court's order is likely to impact the return of Go First, as the airline may not be able to access these aircraft for operations.

These cases were filed by the lessors such as BOC Aviation (Ireland), ACG Aircraft Leasing Ireland, and DAE 13 Ireland Designated Activity Co. submitted new applications after discovering their parked aircraft in poor condition during inspections now disposed of by the court. In this case, three lessors accused the resolution professional of Go First of not maintaining the lessors' assets. The RP argued against the maintainability of the plea, stating that it had already reached its finality in previous orders in the case.

BOC Aviation informed the court that their planes were in deplorable condition, with issues such as poor maintenance of landing gear and main body. The planes were not only dirty, but there was a presence of algae due to the accumulation of water as the planes were not covered during rains. BOC said that it found scratches on the panels, and the signs of subpar maintenance were evident. BOC further claimed their aircraft were in long-term storage in Coonoor even before the moratorium, and the engines were removed as no flight had operated since December 2022, which is only adding to the deteriorating condition of their planes.

Meanwhile, DAE 13 Ireland Designated Activity Co, in its plea, accused Go First of not paying staff salaries in August, resulting in poor plane conditions, including a dirty fuselage and corrosion in various parts like brakes. They also claimed Go First withheld essential aircraft documents, hindering airworthiness inspections. In a separate submission, ACG raised concerns over key components missing in the leased planes, such as fan blades, and urged Go Airline to replace all the missing parts immediately.

The RP stated that the single bench should not pass any directives because, according to the "doctrine of merger", its 5 July order had already merged with the 12 July division bench order of the high court, which was upheld and modified by the Supreme Court. Therefore, only a higher authority, like the division bench, can address these pleas. Separately in the deregistration case of the aircraft in the high court, the airline's lessor demanded the deregistration of their aircraft following the latest changes made in the Insolvency and Bankruptcy Code by the Ministry of Corporate Affairs. The court will hear this case on 19 October.

Facing insolvency, Go First may soon find a new owner, as media reports suggest that the airline has received an expression of interest from Jindal Power. Go First filed for insolvency due to financial challenges stemming from problematic Pratt & Whitney engines, and the NCLT admitted its plea on 10 May, leading to the suspension of the airline's board.