Friday, September 01, 2023

Go First case: NCLT asks RP to file report on maintenance of leased aircraft, engines

The National Company Law Tribunal (NCLT) on September 1 asked the Resolution Professional (RP) of the grounded airline Go First to file a report on the maintenance of leased aircraft and engines.

NCLT's direction came after a lessor told the tribunal that some parts of their leased equipment had gone missing. According to the lessor, they conducted an inspection before the airline was admitted to insolvency and conducted another inspection recently, after which they found some parts missing. Thus the lessor told the tribunal that RP is not maintaining the aircraft and engines as per NCLT's earlier directions.

The lessor also argued that they could incur a huge loss if this is permitted to continue as the value of aircraft and engines run into millions of dollars.

The NCLT questioned the motive of the Committee of Creditors (CoC) application to be permitted to make their submissions on pleas by lessors. According to NCLT, the RP is viewed as a representative of CoC's interests and it was curious that the CoC has filed an application to put forth their submissions.

Furthermore, the tribunal questioned the CoC as to what led to the situation wherein it had to file an application to make separate submissions. The lessors contended that the CoC and RP had filed this application to derail the final hearing of their pleas.

The tribunal, however, permitted the CoC to make submissions in the case without making them a party to the proceedings.

The case is now listed for a final hearing on September 12.

01/09/2023 SN Thyagarajan/Moneycontrol

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