TaxTMI 
TaxTMI 
2023 (8) TMI 197
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....rs on behalf of the Petitioners has made the 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 Aircra....
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....priate 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. .... 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 th....
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....ce before this Court and without the permission of this Court. The Respondents are therefore, unjustly trying to create equities in their favour by operating and flying Aircraft without the requisite permission(s). (viii) The malafide intention of the Respondent 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 ....
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....ition is applicable if : - The aircraft will stay in flight-ready condition - The aircraft will be out of operation for a short period to a period of some months. - There is a risk that the aircraft must do a return to operation procedure - You do a preservation procedure with small initial costs. You must regularly maintain the aircraft with important periodic 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 comm....
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....sed in its writ jurisdiction and no law has been laid down by the Hon'ble High Court by the said order. Moreover, the present applications are filed in the CIRP proceedings under the IBC and hence, need to be considered in the light of the provisions contained in the IBC, 2016." [Emphasis supplied] (ix) The obligation of the Respondent No. 9/RP of Go Airlines to maintain the Aircrafts exists post termination of the leases by the Petitioners. The Petitioners themselves 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 t....
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....s commenced flying the Aircrafts of the Petitioners despite the fact that the Lease Agreements with respect to such Aircrafts have been terminated by the Petitioners. 7.1 The Lease Agreements qua the following 10 Aircrafts have been terminated on the dates as set forth beside them in the table below: S.No Details of the Aircraft Leased Lease Agreement Date(s) Lease Agreement Termination Date(s) 1. Airbus A320-214 MSN 5675 IRM VT-GON 24.07.13 02.05.23 2. Airbus A320-271N MSN 7047 IRM VT-WGA 02.05.16 02.05.23 3. Airbus A320-271N MSN 7074 IRM VT-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 ....