The Delhi High Court directed the DGCA to process de registration of leased aircrafts in the much celebrated Go First case.
The Petitioners/Lessors here are the lessors and owners of Aircraft [hereinafter referred to as “Petitioners/Lessors”] that have been leased to Go Air (India) Ltd. [hereinafter referred to as “Respondent/Go Air”] who is being represented before this Court by the Resolution Professional [hereinafter referred to as “Respondent/RP of Go Air”] appointed by an order of the National Company Law Tribunal, Special Bench, New Delhi [hereinafter referred to as “NCLT”].
The principal grievance of the Petitioners/Lessors as articulated in the present Petitions is that the Respondent/DGCA has failed to deregister their Aircraft(s) in contravention of Sub-Rule (7) of Rule 30 of the Aircraft Rules, 1937 [hereinafter referred to as “the Aircraft Rules”].
It was contended by the Petitioners/Lessors that in consonance with the Cape Town Convention and the Aircraft Rules, subject to the fulfilment of the provisions of sub-Rule (7) of Rule 30 of the Aircraft Rules, the registration authority, in this case, Respondent/DGCA, does not require the consent of the lessee prior to deregistration and export of an Aircraft.
A Single Bench of Tara Vitasta Ganju observed that “It is also to be considered that in view of the delay in deregistration of the Aircraft, India’s compliance rating of the Cape Town Convention and Cape Town Protocol has fallen from 3.5 to 2 out of 5, which is a significant drop. These compliance ratings have a long term impact on the Aircraft industry in India and also to Airlines operating in India, including a significant increase in lease rental payments charged by the Petitioners/Lessors. In fact, a chain reaction has been set off which will have a ramification on leasing, for all commercial Airlines in the country. The inconvenience of a specific party cannot outweigh the statutory provisions and the International Treaty obligations which are applicable to these Aircraft.”
The Court passed certain directions like: All maintenance tasks with respect to the Aircraft as set forth in Paragraph 44.2 hereinabove, shall be undertaken by the Petitioners/Lessors and/or their authorised representatives upto and until the time the Aircraft are deregistered and exported in pursuance of Rule 32A of the Aircraft Rules. 44.4 The Respondent/DGCA and the Respondent/AAI shall aid and assist the Petitioners/Lessors and grant the Petitioners/Lessors their employees, agents, officers and/or authorised representatives access to the Airports, where the Aircraft as set forth in Paragraph 44.2 hereinabove, are parked.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
