Go First lessor gets NCLAT approval for inspection of grounded aircraft

The National Company Law Appellate Tribunal (NCLAT) has granted permission to Jackson Square Aviation Ireland Ltd, the lessor for Go First Airlines, to conduct an inspection of its grounded aircraft, as per media reports. This decision by the tribunal aligns with its previous observation in the Engine Lease Finance BV case, where a similar right was granted. In that instance, the NCLAT had modified the National Company Law Tribunal's (NCLT) order to allow leased aircraft operations but disagreed with the restriction on lessor inspections.

The Appellate Tribunal directed the resolution professional (RP) to schedule the inspection within 10 days. The lessor's request was filed against Go First's RP, Shailendra Ajmera, challenging the NCLT's previous order.

Lessor's concerns 

As per the report, Go First's Ireland-based lessor, ACG Aircraft Leasing, raised concerns about missing critical components such as fan blades and escape slides from at least two Airbus A320 planes. This information was submitted to the Delhi High Court.

The ongoing case about the deregistration of grounded aircraft by the lessors is proceeding through regular hearings in the Delhi High Court. Despite approvals from the aviation regulator, the DGCA, Go First's RP has faced challenges in raising funds due to a Delhi High Court order.

The airline, formerly owned by the Wadia Group, filed for insolvency, citing issues with Pratt and Whitney's faulty engines. The NCLT admitted the case on May 10 and imposed a moratorium on the airline's financial obligations.