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regular-article-logo Friday, 19 July 2024

NCLAT allows Go First's airplane lessor Jackson Square Aviation to inspect planes

Earlier, on August 18, 2023, the NCLAT allowed the Engine Lease Finance BV, the company that had leased the engine to Go First, to inspect its assets

PTI New Delhi Published 01.09.23, 04:35 PM
Jackson Square Aviation Ireland is the second lessor that has been allowed by the NCLAT to inspect its assets leased to now grounded Go First.

Jackson Square Aviation Ireland is the second lessor that has been allowed by the NCLAT to inspect its assets leased to now grounded Go First. File

The National Company Law Appellate Tribunal (NCLAT) has permitted Jackson Square Aviation Ireland Ltd to inspect aircraft that it has leased to crisis-hit airline Go First.

A two-member NCLAT bench on Thursday disposed of the plea filed by the aircraft lessor for inspection.

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Jackson Square Aviation Ireland is the second lessor that has been allowed by the NCLAT to inspect its assets leased to now grounded Go First. Earlier, on August 18, 2023, the NCLAT allowed the Engine Lease Finance BV, the company that had leased the engine to Go First, to inspect its assets.

During the proceedings, counsel appearing for Jackson Square Aviation Ireland submitted the order passed by the NCLAT on August 18, 2023, and sought similar direction.

Consenting to this NCLAT said: "We are of the view that this Appeal is fully covered by the aforesaid judgment. This Appeal is also disposed of in terms of the order dated August 18, 2023." Earlier NCLT had rejected Go First lessors' petitions to take back the planes leased to the grounded airline.

In its order, NCLT on July 26 held that aircraft and its engines are the sole essence of Go First's business, and if taken away, it would result in its "corporate death" leaving no scope for its resolution.

"The physical possession of the aircraft/engines is indisputably with the corporate debtor (Go First). Therefore, in terms of Section 14(1)(d), the applicants would not be within their rights to claim possession of these aircraft/engines," the NCLT had said in its 29-page order passed on the petitions filed by several lessors of Go First.

"The moratorium prohibits the recovery of the aircraft/engines by the lessors (applicants) from the corporate debtor," it added.

This was challenged by lessors before NCLAT, which granted relief to Engine Lease Finance (ELF) after modifying the earlier order of NCLT.

NCLAT has directed the resolution professional of Go First, which is going through the corporate insolvency resolution process (CIRP), to allow the world's leading independent engine financing and leasing company to inspect the engines within 10 days of the order.

On May 10, NCLT admitted the plea of Go First to initiate voluntary insolvency resolution proceedings.

Go First stopped flying on May 3.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

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