TMI Blog2023 (8) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... following submissions: (i) In disregard of the order and directions passed by the Court, Respondent No. 9/RP of Go Airlines has on 25.07.2023 and on 28.07.2023 flown 2 Aircraft owned by the Petitioners without the permission of this Court. It is contended that this Court by its judgment dated 05.07.2023 [hereinafter referred to as "05.07.2023 judgment"] had passed a detailed interim order granting reliefs to the Petitioners. Further, in paragraph 11 of the 05.07.2023 judgment, this Court has passed directions that once the process of the deregistration has begun, the Aircrafts cannot be flown as below: "11. The provisions of the Aircraft Act, 1934 and the Aircraft Rules inter-alia provide that no person shall use and operate an Aircraft unless it is in accordance with the Aircraft Rules. 11.1 Rule 5 of the Aircraft Rules provides for the registration etc. of an Aircraft and states that unless an Aircraft has been registered and it bears its nationality and registration marks on the Aircraft, it shall not be flown. 11.2 The registration and marking of an Aircraft is provided for in Rule 30 of the Aircraft Rules. The relevant extract reads as follows: "30. Certificate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiously as possible, preferably on the next scheduled date of hearing. .... 16. In the meantime, direction (ii) contained in paragraph No. 20.1 of the impugned judgement is modified to the extent that GoAir, through RP, is permitted to carry out all maintenance tasks of the thirty subject aircrafts, their engines and other parts and components, which are parked at various airports, with due permissions mandated under extant rules/ law. The Lessors are also free to carry out periodic monthly inspections of the aforesaid aircrafts in accordance with law." [Emphasis supplied] (iii) The Division Bench further permitted Respondent No. 2/DGCA to process and decide Respondent No. 9/RP of Go Airlines resumption application only and no permission was granted whatsoever to Respondent No. 9/RP of Go Airlines to operate the Petitioners Aircrafts by the DB order. Reliance is placed on para 18 of the Division Bench order, which reads as follows:- "18. In view of the statement made by Ms. Gosain, without prejudice to the rights and contentions of the parties, the DGCA is permitted to process and decide Go Air's resumption application." (iv) Subsequently thereto, Respondent No. 2/DGCA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent No. 9/RP of Go Airlines can also be seen from the public announcements and Media reports dated 26.07.2023, which declared that the "test flights" were successful and Respondent No. 9/RP of Go Airlines would resume operations soon. This, despite the pendency of the proceedings before this Court and National Company Law Tribunal [hereinafter referred to as "NCLT"]. (ix) Since the lease(s) with respect to the 10 Aircrafts owned by the Petitioners have been terminated by the Petitioners, grave prejudice and irreparable loss will be caused to the Petitioners if Respondent No. 9/RP of Go Airlines is not restrained from flying the Aircrafts given that the Aircrafts are such valuable equipment. 3. The summary of the arguments of Mr. Ramji Srinivasan, learned Senior Counsel appearing on behalf of the Respondent No. 9/RP of Go Airlines is below: (i) Mr. Srinivasan submits that the prayers in the present Application are to strictly comply with the directions and observations in 05.07.2023 judgment and the same are being duly complied with by the Respondent No. 9/RP of Go Airlines. (ii) The fact that the Aircraft(s) have been flown by the Respondent No. 9/RP of Go Airlines is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriodic ground checks (frequent engine runs, etc.) You must do a non-revenue flight at intervals of 3 months during a parking period in flight-ready condition..." [Emphasis supplied] (vi) Some Lessors of Aircrafts had approached NCLT for directions interalia to restrain the Respondent No. 9/RP of Go Airlines from flying the Aircrafts owned by such Lessors for commercial use. The NCLT by its order dated 26.07.2023 [hereinafter referred to as "NCLT order"] has dismissed the applications filed by these Lessors. Reliance is placed on the following extract of the NCLT order: "....13. With respect to the interim prayers by the Applicant(s) i.e Corporate Debtor/ Respondent to refrain from operating or flying the Subject Aircraft owned by the Applicant for commercial use, it is pertinent to mention that the DGCA has not deregistered the aircraft, which means that they are available to the Corporate Debtor for use to resume operations. Therefore, as long as the aircrafts/engines are registered, they can be used for operating or flying to keep the Corporate Debtor as a going concern, however, within the safeguards/safety norms prescribed by the Regulators. Additionally, it has alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elves in the Termination Letter dated 02.05.2023 acknowledge maintenance by Respondent No. 9/RP of Go Airlines as follows: "5. ..... (iv) Lessee's continuing obligations under the Lease Agreement, including, without limitation, its obligations to insure, repair and maintain the Aircraft, all of which remain in full force and effect." (x) It was, therefore, imperative upon the Respondent No. 9/RP of Go Airlines to undertake and continue these non-scheduled/handling flights. 4. Ms. Anjana Gosain, learned Counsel who appears on behalf of the Respondent No. 2/DGCA submits that the DB Order had directed that the Respondent No. 9/RP of Go Airlines resumption application be processed by the Respondent No. 2/DGCA and hence, Respondent No. 2/DGCA processed and finalised the same by the Resumption Plan Letter. 4.1 However, Ms. Gosain submits that the Resumption Plan Letter [which is appended at Annexure C to the present Application] clearly states that the Resumption Plan is subject to the conditions as stated therein as well as outcome of the Writ Petitions and Applications pending before this Court and the NCLT. 5. Mr. Rajiv Nayar, learned Senior Counsel in Rejoinder, has made t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T-WGB 02.05.16 02.05.23 4. Airbus A320-271N MSN 8498 IRM VT-WGY 09.10.18 02.05.23 5. Airbus A320-214 MSN 5990 IRM VT-GOQ 30.10.18 02.05.23 6. Airbus A320-271N MSN 8656 IRM VT-GOP 09.10.18 02.05.23 7. Airbus A320-214 MSN 5809 IRM VT-WGA 30.09.12 02.05.23 8. Airbus A320-271N MSN 7330 IRM VT-WGE 24.01.17 02.05.23 9. Airbus A320-214 MSN 6072 IRM VT-GOR 01.05.14 02.05.23 10. Airbus A320-271N MSN 7205 IRM VT -WGD 01.12.16 02.05.23 8. The provisions of the Aircraft Act, 1934 and the Aircraft Rules, 1937 provide that no person shall use and operate an Aircraft unless it is in accordance with the Aircraft Rules, 1937. Rule 30(6)(iv) of the Aircraft Rules, 1937 provides that the registration of an Aircraft registered in India may be cancelled where the lease in respect of the Aircraft has expired or been terminated. Rule 30(6)(iv) states: "30. ...... (6) The registration of an aircraft registered in India may be cancelled at any time by the Central Government, if it is satisfied that - (i) .... ..... (iv) the lease in respect of the aircraft, registered in pursuance of subclause (iv) of clause (a) of sub-rule (2) [has expired or has been ter ..... 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