Delhi High Court for Aircraft Protection Permits Go First's Lessors to Engage Security Personnel

In a recent development, the Delhi High Court has granted permission to the lessors of crisis-hit airline Go First to engage security personnel round-the-clock for safeguarding their grounded aircraft.

The interim order comes in response to multiple applications by several lessors seeking maintenance of their aircraft, which have been lying idle for several months. The court also directed the Directorate General of Civil Aviation (DGCA) to permit duly verified security personnel to monitor the aircraft.

The High Court stated, "The Petitioners/Lessors are permitted to contract a 24 hour security service for all the Aircrafts at their own expense. Respondent No.3/DGCA shall permit, the duly verified security personnel/security agency so appointed by the Petitioners/Lessors, access at the various airports in and around the country, where the Aircraft are lying parked."

The main petitions seek deregistration of the planes by the aviation regulator DGCA, allowing lessors to reclaim them from the financially distressed airline. In an earlier interim order on July 5, the high court had allowed lessors to inspect their aircraft at least twice a month and carry out maintenance.

The recent decision underscores the importance of maintaining and securing valuable and sophisticated aircraft during the financial challenges faced by the airline.

Furthermore, the High Court directed, "The Respondent/RP of Go Air shall within the next fourteen days provide access to the Petitioners/Lessors of the following documentation in relation to the Aircraft, the Airframe, its engines and other parts and components:

(a) Records pertaining to removal of all parts and components including engines, Air Frame, etc;

(b) Records relating to the storage of the Aircraft;

(c) Historical records and hardcopy records in relation to the Aircraft which may be located at a storage facility including any online records;

(d) Updated technical records, Aircraft status documents and statements in relation to the Aircraft;

(e) Any other document or record as required to ascertain the airworthiness of the Aircraft, its engine(s), the Airframe and all parts and components of the Aircraft."

The National Company Law Tribunal (NCLT) had admitted Go First's voluntary insolvency resolution petition on May 10 and appointed an Interim Resolution Professional to manage the carrier. The ongoing insolvency resolution proceedings have placed a moratorium on financial obligations and asset transfers, preventing lessors from deregistering and reclaiming their leased aircraft.

The High Court is set to further hear the main matter on October 19.

Case Title: ACG AIRCRAFT LEASING IRELAND LIMITED VS. UNION OF INDIA & ORS. & Other connected cases