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TMI Blog2023 (8) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... the aircrafts, which are designed to prevent cannibalisation and preserve their value and integrity - no severe prejudice would be inflicted upon GoAir in the event the matter is relegated to the learned Single Judge for final disposal of the writ petitions, especially in light of the fact that DGCA would require a minimum of fifteen days to decide on re-commencement of GoAir s flights - it is deemed appropriate in the interest of justice to refrain from entertaining the appeals at this juncture. The learned Single Judge is however requested to endeavour to decide the writ petitions as expeditiously as possible, preferably on the next scheduled date of hearing. The pleadings have not been completed in the writ petitions. Accordingly, a week s time is granted to GoAir as well as the DGCA to file their respective counter affidavits in the writ petitions pending before the learned Single Judge - Appeal disposed off. - LPA 538/2023, CAV 333/2023, CM APPL. 34414-34416/2023 LPA 542/2023, CAV 341/2023, CM APPL. 34931-34934/2023 LPA 543/2023, CM APPL. 34935-34938/2023 LPA 544/2023, CM APPL. 34939-34942/2023 LPA 545/2023, CAV 343/2023, CM APPL. 34991-34994/2023 LPA 546/2023, CM APPL. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1937. In the meantime, NCLT admitted GoAir s Section 10 application on 10th May, 2023, thereby initiating the Corporate Insolvency Resolution Process [ CIRP ], which triggered the moratorium under Section 14 of the IBC. 3. In light of the directions contained in the above admission order, the DGCA decided to keep the Lessors applications for de-registration in abeyance. Aggrieved therewith, the Lessors filed writ petitions before the Court for directions to DGCA to cancel the aircraft registration as per the Aircraft Rules. For reference and contextual understanding, the prayers in W.P.(C) 7369/2023 are extracted below: (a) issue a Writ of Certiorari and / or any other similar or appropriate writ, order or direction quashing and setting aside the Impugned Decisions passed by Respondent No.2 rejecting the De-registration Letters of the Petitioners; (b) issue a Writ of Mandamus and / or any other similar or appropriate writ, order or direction to Respondent No.2 and their agents and officers to immediately de-register/ cancel the registration of the Aircraft, in accordance with the Aircraft Rules and facilitate their export by providing an export Certificate of Airworth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmitted by the Respondent/DGCA and the appropriate Airport Authorities to access the Airport(s) where the 30 Aircrafts are parked [details of the Aircraft(s) is reproduced in the table in paragraph 3.2 herein] inter alia to inspect their respective Aircrafts, within the next 3 days; (ii) The Petitioners, their employees, agents, officers and/or representatives shall be permitted to carry out inspection and all maintenance tasks of the Aircraft, its engines and other parts and components, of all 30 Aircrafts [as are set forth in table at paragraph 3.2 herein], at least twice every month, until the final disposal of the Writ Petitions; (iii) Respondent/GoAir, its directors, employees, agents, officers and or representatives or the IRP/RP(s) or any person acting on their behalf, are hereby restrained from removing, replacing, taking out any accessories, parts, components or spares, etc. or any relevant operational or other Manuals /records, documentation from any of the 30 Aircraft, except with prior written approval of the Lessor of such Aircraft; (iv) The following additional directions shall be applicable to Aircraft MSN 6072: Respondent/DGCA shall permit the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 10 Application? (2) Whether at the time of hearing of Section 10 Application, if some of the creditors appear and object admission of Section 10 Application alleging that Application has been filed fraudulently with malicious intent, Adjudicating Authority is required to first give opportunity to the creditor to file Section 65 Application and decide the said Application before proceeding to admit Section 10 Application? (3) Whether Lessors having terminated Lease Agreement in favour of the Corporate Applicant prior to admission of Section 10 Application, the moratorium as directed by order dated 10 May, 2023 cannot be said to be applicable to the assets, which were earlier leased by the Lessor to the Corporate Applicant? (4) Whether the Appellant having terminated the Lease Agreement in favour of the Corporate Applicant prior to admission, is entitled to claim possession of the aircrafts and export the aircrafts as per the Lease Agreement? In the aforesaid appeal, while upholding the admission of Section 10 application, the NCLAT issued the following directions: (1) The order dated 10.05.2023 admitting Section 10 Application is upheld. (2) The Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the following: 7.1. Undisputedly, GoAir filed an application under Section 10 of IBC on 02nd May, 2023, however, mere filing of the application would not trigger the moratorium, which comes into effect only on the insolvency commencement date i.e., the date of admission of the application. The NCLT accepted GoAir s application on 10th May, 2023, but the Lessors had issued termination notices before the said date (between 02nd to 04th May, 2023). Therefore, the factum of admission of Section 10 application would not preclude the Lessors from seeking recovery of the aircrafts as the constructive and lawful possession thereof is presently with the Lessors. 7.2. Subsequent to cessation of the lessor-lessee relationship, the Lessors were well within their rights to apply for de-registration of the aircrafts in accordance with Rule 30(7) of the Aircraft Rules. The application submission and other compliances for de-registration of the aircrafts were completed before the moratorium came into force, and the same are unaffected thereby. As per the said Rule, DGCA ought to have processed the Lessors request within five days from the date of application. 7.3. The right to seek de-re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s revival scheme and resultantly, GoAir has petitioned the DGCA for reinstatement of the airline s operations, of which they expect an immediate approval. In the event such an approval is granted, they submit that directions in paragraph No. 20.1 of the impugned judgement would prevent GoAir s renewed functioning. 12. In view of the above-noted submission, the Court has queried from Ms. Anjana Gosain, learned counsel for DGCA, as to the procedure and timeline for grant of necessary authorisation for re-commencement of flying operations. Ms. Gosain, on instructions, explains that GoAir s resumption plan has been subjected to an audit. The resultant audit report, identifying certain shortcomings in the plan, has been forwarded to the Resolution Professional [ RP ] today and they have been called upon to file a response thereto for addressing/ curing said deficiencies. Upon being satisfied with the compliances, the plan would be approved. Thereafter, GoAir would have to seek permission for flight routes and schedule, which is ordinarily granted within ten days of the application. She submits that GoAir would be able to resume flying operations only after the DGCA approves the fli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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