NCLAT allows engine lessor to inspect Go First planes
What's the story
The National Company Law Appellate Tribunal (NCLAT) has granted engine lessor Engine Lease Finance BV permission to inspect four engines leased to Go First. The appellate body revised a prior order by the National Company Law Tribunal (NCLT), which did not permit the engine lessor to conduct an inspection. The airline's Resolution Professional (RP) is required to inform the lessor of the inspection date within 10 days.
Details
The lessor argued that each engine is valued at $15mn
Advocate Anand Venkatramani, representing the engine lessor, argued that it is important to allow the inspection of engines, each valued at $15 million. He disclosed that the RP had contacted Go First in June 2023 regarding a potential inspection, but no action was taken. Senior advocate Ramji Srinivasan, representing the RP, contended that the NCLT's order was not final and requested NCLAT to refrain from intervening.
What Next?
The Delhi High Court had allowed engine inspection
The lessors also argued that the Delhi High Court allowed them to inspect the engines. However, the NCLT directed the RP to maintain the engines. "In order to keep the corporate debtor as a going concern, the aircraft have to be flown, hence, the aircraft shall be with the corporate debtor and shall be operated by the corporate debtor. Therefore, we see no reason to allow this interim relief claimed by the applicants (engine and aircraft lessors)," read NCLAT's order.