India's Supreme court has dismissed an appeal by the resolution professional managing the Go First (GOW, Mumbai International) insolvency against an order allowing lessors to inspect their aircraft.

On August 7, the court, that country's top judicial authority, refused to interfere with an early July ruling by the High Court of Delhi that allowed lessors SMBC Aviation Capital, CDB Aviation, Aviation Capital Group, SKY Leasing. DAE Capital, Carlyle Group, and Merx Aviation Finance to access to airport aprons to inspect their aircraft and engines.

"We are not entertaining this at the present stage," ruled the three judges hearing the matter. They said since the High Court was hearing the matter on a day-to-day basis, it would not interfere. "Let the jurisdictional issues also be addressed before the (High Court) single judge."

Ramji Srinivasan, representing Go First and its resolution professional, Shailendra Ajmera, said he went to the Supreme Court in contravention of orders from the High Court but was seeking clarity over conflicting orders issued by that court and India's bankruptcy court, the National Company Law Tribunal (NCLT). Whereas the High Court had issued orders permitting the lessors access, an appeal by Ajmera to the NCLT later in July resulted in a conflicting ruling and barred lessors or their agents from inspecting their aircraft.

Go First suspended its operations in early May and are presently attempting to relaunch. However, as reported in ch-aviation, lessors want to repossess every aircraft in the Go First fleet. But attempts to do so are being thwarted by the NCLT, which is demonstrating a distinct trend towards favouring distressed airlines over distressed creditors.

In rejecting Go First's application, the Supreme Court also failed to provide any jurisdictional clarity. Meanwhile, in the High Court, a judge has ruled that Go First cannot fly aircraft under the guise of maintenance over the objection of lessors.

SMBC Aviation Capital, which has nine aircraft placed at Go First, initiated the complaint after Go First operated two flights using their aircraft without their or the court's permission. Counsel for Go First and Ajmera argued they were maintenance flights necessary to keep the aircraft in good operational order.

Finding in favour of SMBC, Justice Tara Vitasta Ganju said, "prima facie, the term – scheduled maintenance cannot be understood to include flying the aircraft even if it is a non-commercial flight [...] Go Air cannot be permitted, at this stage, to continue with these handling/maintenance flights.” It is unknown whether Ajmera will attempt to obtain a different decision from the NCLT.

Central to any relaunch is Go First's ability to hold onto some aircraft, a strategy largely resisted by lessors. According to ch-aviation fleets data, 12 lessors have 54 aircraft placed at Go First.

Meanwhile, Ajmera has extended the time frame for potential buyers of Go First to lodge expressions of interest. This week, the deadline was pushed back by one month to September 8, 2023.