Delhi High Court allows Go First lessors to hire security for planes after aircraft parts go missing

The Delhi High Court has allowed the lessors of Go First planes to hire a 24-hour security service for their 54 planes which were leased out to Go First Airlines, after the Court was told that some parts of certain aircrafts have gone missing. [ACG Aircraft Leasing Ireland Limited v Union of India & Ors].Justice Tara Vitasta Ganju observed that the “cannibalization” of parts of the airplanes was evident in the photographs placed before the Court by the lessors..“The Petitioners/Lessors have made out a prima facie case and it has become necessary for this Court to pass additional directions to protect these highly valuable equipment during the pendency of the present case,” the Court said.The Court, therefore, directed the Directorate General of Civil Aviation to permit duly verified security personnel or a verified security agency appointed by the lessors to access the airplanes which are parked at various airports across the country..The lessors had filed an application seeking urgent directions to access and inspect all aircraft documents. It was also alleged that the airplanes were not being maintained properly and that a “cannibalization” of their parts was taking place.Photographs purportedly showed that the Captain's side stick (used to fly the aircraft), tiller (used to steer the aircraft while on ground), one engine’s cover and the ATC Transponder (which allows the Air traffic control (ATC) to detect the speed, altitude and direction of the aircraft), were missing from the planes. .The Court noted that the Resolution Professional overseeing the insolvency process of Go First airlines had earlier been directed (in July) to maintain the airplanes and preserve their value and integrity. “The extent that these directions are being complied with, will require examination,” the Court said..The Court also directed the Resolution Professional of Go First (earlier known as Go Air) to provide access to the lessors to documents relating to the aircraft, airframe, its engines and other parts.The following records have been ordered to be supplied:Records pertaining to removal of all parts and components including engines, air frame, etc.;Records relating to the storage of the aircraft;Historical records and hardcopy records in relation to the aircraft which may be located at a storage facility including any online records;Updated technical records, Aircraft status documents and statements in relation to the aircraft;Any other document or record as required to ascertain the airworthiness of the aircraft, its engine(s), the airframe and all parts and components of the aircraft. .Earlier, on July 5, the High Court had allowed aircraft's lessors access to the planes that they had leased out to Go First Airlines and to carry out maintenance work on them. However, the lessors said that a superficial inspection or “walk-around the aircraft” was not sufficient without the documents to ensure a proper inspection. After looking into the lease agreements between the lessors and Go First, the Court concluded that the term aircraft not only means the particular airplane but also its engines, all parts and components, ancillary equipment or devices furnished under the agreements and all aircraft documents.Considering the same, the Court allowed the lessors' prayer for access to the documentation..Go First is presently undergoing insolvency proceedings. The airlines had moved the National Company Law Tribunal (NCLT) in Delhi in May this year to initiate the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC). The aircraft lessors then moved the High Court for the deregistration of their aircrafts which were with Go First..[Read Judgment]