BackGo First files SC caveats against 4 lessors
By filing caveats, the board is trying to ensure the airline gets a prior notice before legal action is initiated against it.
PremiumNEW DELHI : The suspended board of Go First has taken proactive measures by filing caveats in the Supreme Court against four aircraft leasing companies, which are seeking to deregister their aircraft from the airline’s fleet in order to repossess them.
By filing caveats, the board is trying to ensure the airline gets a prior notice before legal action is initiated against it.
On Tuesday, the caveats were submitted by Pranjal Kishore, the counsel representing the suspended board of Go First. The caveats are in relation to cases involving Go First chairman Varun Berry and lessors SMBC Aviation, GY Aviation, Engine Leasing Finance, and SFV Aircraft Holdings.
“The caveat is filed in higher court or tribunal so that in the event the parties approach a higher forum, then the caveator will be given a notice of application, which is filed for challenging an order of a lower court or any other application and they can be heard before proceeding with the hearing of such application," Ashish Pyasi, associate partner, Dhir and Dhir Associates, said.
Now that the caveats have been filed, the court will have to consider them first before hearing any application; hence, the hearing will not proceed without due notice, Pyasi said.
An appeals court on Monday upheld the National Company Law Tribunal’s (NCLT) order preventing Go Airlines (India) Ltd’s aircraft from being repossessed by lessors amid the insolvency proceedings, significantly enhancing the prospect of the grounded airline’s return to the skies. The ruling came in response to appeals filed by the four aircraft lessors against the NCLT order restraining them from repossessing planes leased to Go First.
The National Company Law Appellate Tribunal order will likely help the airline resume operations. An adverse order would have led to lessors taking back the planes, impacting Go Air’s plan to resume operations. The airline plans to restart flights next month, but is yet to make any official request to the authorities.
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