Delhi High Court judge recuses from hearing pleas to de-register leased Go First aircraft
Orders the hearing to be listed before another bench
Justice Pratibha M Singh of the Delhi High Court has recused herself from hearing the pleas by four lessors seeking to de-register their aircraft currently on lease with the cash-strapped airline Go First.
The lessors are – Pembroke Aircraft Leasing 11, SMBC Aviation Capital, Accipiter Investments Aircraft 2, and EOS Aviation 12 (Ireland)
It came as a major blow to the passengers, when the low-cost airline, comprising over 5,000 employees, stopped flying on 3 May. It is undergoing voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT).
The lessors’ contended that the airline had no right to use their aircraft as the leases concerning them were terminated.
Recently, the tribunal upheld the insolvency proceedings against Go First in a setback to efforts of its lessors to repossess their aircraft.
While upholding NCLT’s order, the National Company Law Appellate Tribunal (NCLAT) disposed of the lessors’ petition. It directed them to file an appeal before the NCLT.
The respondents in the case include the Union of India and the Directorate General of Civil Aviation.
Go First had approached NCLT, “Due to the ever-increasing number of failing engines supplied by Pratt & Whitney’s International Aero Engines, which has resulted in Go First having to ground 25 aircraft (approximately 50 percent of its Airbus A320neo aircraft fleet) as of 1 May 2023.”
The airline further stated, “The percentage of grounded aircraft due to Pratt & Whitney’s faulty engines has grown from 7 percent in December 2019 to 31 percent in December 2020 and 50 percent in December 2022. This is despite Pratt & Whitney making several ongoing assurances over the years, which it repeatedly failed to meet.”
Go Airlines said it was forced to approach NCLT after Pratt & Whitney, the exclusive engine supplier for its Airbus fleet, refused to comply with an award. It was issued by an emergency arbitrator appointed in accordance with the 2016 Arbitration Rules of the Singapore International Arbitration Centre (SIAC).