Go First's Suspended Board Files Caveats Against Lessors In Supreme Court

The suspended board of directors of Go First filed caveats in the Supreme Court on Tuesday against four of the airline's lessors. According to the Supreme Court of India's website, Varun Berry, the Chairman of the suspended board of Go First, filed four caveats through his attorney, advocate Pranjal Kishore.

The lessors are GY Aviation, SFV Aircraft Holdings, SMBC Aviation Capital Ltd and Engine Leasing Finance BV (ELFC), and they own around 22 planes.

The caveat has been filed against the recent order issued by the National Company Law Appellate Tribunal, which upheld the decision made by the Delhi bench of the NCLT on May 10.

The Principal Bench of the National Company Law Tribunal (NCLT) has granted approval to Go First's request to commence voluntary insolvency resolution proceedings and has appointed an interim resolution professional (IRP) to temporarily suspend the company's board.

A Caveat application serves as a legal measure taken by a litigant to safeguard their right to be heard before any adverse order is issued against them.

Additionally, Sanjeev Berry holds the positions of Executive Vice-Chairman and Managing Director in Britannia Industries, the FMCG arm of the Wadia group.

In relation to the insolvency proceedings against Go First, the aircraft lessors are expressing their opposition and pursuing the repossession of their airplanes, whose leases were terminated prior to May 10th.

In its order, NCLAT directed the lessors to file a claim with NCLT for possession and other claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency.

The NCLAT has issued a joint order, stating that lessors have the freedom to file suitable applications before the NCLT, invoking Section 65 of the Insolvency & Bankruptcy Code (IBC). The order emphasizes the need for proper pleadings and supporting evidence, spanning a comprehensive 40-page document.

"The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with the law," it had said.

Many lessors have applied to the DGCA this month for the deregistration and seizure of Go First's 45 planes.