The Delhi High Court on Thursday issued a contempt notice against Go First’s resolution professional after the bankrupt airline’s lessors filed a case claiming he had defied the court orders regarding maintenance of their aircraft.
The court clarified that this is merely a notice, and no coercive action would be taken against the RP, Shailendra Ajmera, nor would he need to be summoned.
Nevertheless, Ajmera is required to explain to the court why contempt proceedings should not be initiated against him.
The court had on 1 March ordered Go First’s RP to respond whether he was ready to transfer the responsibility of maintaining the aircraft back to the lessors. The lessors had filed an affidavit stating that the RP had failed to maintain their aircraft leased to Go First.
The RP had informed the court that he was willing to hand over the responsibility of maintaining the aircraft to the lessors, and that maintenance work on several aircraft had already commenced.
The court, however, expressed its dissatisfaction with the RP’s response, noting that he had not complied with the court’s instructions, and issued the contempt notice.
DAE (SY22) 13 Ireland Designated Activity Co., one of Go First’s lessors, had filed the contempt petition against the RP in November. Ten out of 14 lessors in the case supported the plea for contempt proceedings against him.
During the previous proceeding, the RP informed the court that he had partially complied with its order by providing maintenance documents to all lessors and initiating steps for maintenance.
The RP also mentioned issuing a work order and the appointment of a Continuing Airworthiness Management Organization by the Directorate General of Civil Aviation for aircraft maintenance. Additionally, he noted meetings with lessors in Mumbai where an agreement was reached to appoint a third party for maintenance.
The RP further stated that maintenance delays occurred due to the resignation of the previous CAMO and a lack of manpower, emphasising that the delay was not intentional but due to unforeseen circumstances as the airline has not been operational since its bankruptcy.
Despite the RP’s response, the lessors insisted on contempt proceedings, arguing that the RP had knowingly taken responsibility for maintenance despite lacking resources and manpower, thereby defying court orders.
The high court had on 5 July allowed the RP to take responsibility for maintaining Go First’s aircraft but allowed lessors the right to inspect—an order later upheld by a division bench of the high court as well as the Supreme Court.
The high court then, on 12 October, directed Go First’s RP to provide all maintenance and technical records along with other key aircraft-related documents to the lessors.
Go First declared bankruptcy in May 2023 due to engine failures from Pratt & Whitney. Legal and administrative hurdles, including disputes with lessors and changes in the National Company Law Tribunal benches, have prevented the airline from resuming operations.
Recently, the NCLT granted a 60-day extension for the moratorium until 4 April, allowing the airline more time to finalise its corporate insolvency resolution process within the total 330 days permitted under the Insolvency and Bankruptcy Code.
Two entities have submitted bids for the revival of Go First’s operations—SpiceJet chairman and managing director Ajay Singh along with Busy Bee Aviation Pvt. Ltd, and Sharjah-based aviation company Sky One.
