2023 Supreme(Del) 4913
IN THE HIGH COURT OF DELHI AT NEW DELHI
Tara Vitasta Ganju, J.
Accipiter Investments Aircraft 2 Limited – Appellant
Versus
Union of India & Anr. – Respondents
W.P.(C) 6569 of 2023 and CM Nos.25806-25807 of 2023
Decided On : 05-07-2023
Advocates appeared:
Mr. Satvik Varma, Senior Advocate with Mr. Ravi Nath, Mr. Ankur Mahindru, Mr.Rohan Taneja, Mr. Aditya Kapur, Mr.Tanveer Oberoi, Mr. Tushar Mudgil,Mr. Mehul Jain, Mr. Tarun and Mr. Ankit, Advocates, for the Petitioner in W.P.(C) 6569 of 2023 and CM Nos.25806-25807 of 2023.
Mr. Rajesh Gogna, CGSC, for the Respondent-1/UOI in W.P.(C) 6569 of 2023 and CM Nos.25806-25807 of 2023.
Ms. Anjana Gosain, SPC with Ms. Avshreya Pratap Singh Rudy, Ms. Nippun Sharma, Advocates, for the Respondent-1/UOI/DGCA in W.P.(C) 6569 of 2023 and CM Nos.25806-25807 of 2023 & for the Respondent-1/DGCA & Respondent-2/UOI in W.P.(C) 7214/2023 and CM Nos.28114-28115/2023 & 30784/2023.
Mr. Ramji Srinivasan, Senior Advocate with Mr. Anuj Berry, Mr. Siddharth Ranade, Mr. Ramakant Rai, Mr. Sourabh Rath, Ms. Somesh Srivastava, Mr. Varun K. Tikmani, Mr. Aryan Agrawal, Ms.Shruti Pandey, Ms. Namrata Saraogi and Ms. Drishti Kaushik, Advocates, for the Respondent-2/IRP in W.P.(C) 6569 of 2023 and CM Nos.25806-25807 of 2023 & W.P.(C) 6626/2023 and CM Nos.26011-26012/2023.
Mr. Dayan Krishnan, Senior Advocate with Mr. Ravi Nath, Mr. Ankur Mahindru, Mr. Rohan Taneja, Mr.Aditya Kapur, Ms. Mehul Jain, Mr. Tarun Gumber and Mr. Ankit, Advocates, for the Petitioner in W.P.(C) 6626/2023 and CM Nos.26011-26012/2023
Mr. Rajesh Gogna and Ms. Avshreya Pratap Singh Rudy, Advocate (GP), for the Respondent-1/UOI in W.P.(C) 6626/2023 and CM Nos.26011-26012/2023 & Respondent-2/DGCA in W.P.(C) 7369/2023 and CM Nos.28705-28706/2023.
Mr. Mukul Rohtagi and Mr. Arun Kathpalia, Senior Advocates with Ms. Meghna Rajadhyaksha, Ms. Medha Sachdev, Mr. Rishabh Jaisani, Ms. Salonee Kulkarni, Ms. Riya Basu, Mr. Ajay Kumar, Mr. Kshitij Wadhwa, Mr. Aditya Dhupar and Ms. Diksha, Advocates, for the Petitioner in W.P.(C) 7214/2023 and CM Nos.28114-28115/2023 & 30784/2023.
Mr. Ajay Kumar, Ms. Anchal Nanda, Mr. Hetram Bishnoi, Advocates, for the Petitioner in W.P.(C) 7214/2023 and CM Nos.28114-28115/2023 & 30784/2023.
Mr. Harish N. Salve, Senior Advocate with Mr. Anuj Berry, Mr. Siddharth Ranade, Mr. Ramakant Rai, Mr. Sourabh Rath, Ms. Somesh Srivastava, Mr. Varun K. Tikmani, Mr. Aryan Agrawal and Ms. Drishti Kaushik, Advocates, for the Respondent-3/IRP in W.P.(C) 7214/2023 and CM Nos.28114-28115/2023 & 30784/2023.
Mr. Rajiv Nayyar, and Mr. Amit Sibal, Senior Advocates with Ms. Marylou Bilawala, Mr. Premaya Goyal, Ms. Sharleen Lobo, Ms. Neetika Sharma, Mr. Girish Shankar, Mr. Chiranjin Sharma, Mr. Vinamra Kopariha and Mr. Mayank Bharghav, Ms. Apoorva Kaushik, Advocates, for the Petitioner in W.P.(C) 7369/2023 and CM Nos.28705-28706/2023 & W.P.(C) 7773/2023 & CM APPL. 29997-29998/2023 & W.P.(C) 8088/2023 & CM APPL. 31155-31156/2023.
Ms. Anjana Gosain, SPC with Ms. Avshreya Pratap Singh Rudy, Ms. Nippun Sharma, Ms. Hetika Vadhera, Advocates, for the Respondent-3/AAI in W.P.(C) 7369/2023 and CM Nos.28705-28706/2023 & W.P.(C) 7773/2023 & CM APPL. 29997-29998/2023& for the Respondent-1/UOI & Respondent-2 in W.P.(C) 7773/2023 & CM APPL. 29997-29998/2023.
Mr. Milanka Chaudhury, Ms. Ashly Cherian, Ms. Harshita Agarwal and Ms.Ragini Sharma, Advocates, for the Respondent-4, 6 and 8 in W.P.(C) 7369/2023 and CM Nos.28705-28706/2023.
Mr. Sandeep Sethi, Senior Advocate with Mr. Anuj Berry, Mr. Siddharth Ranade, Mr. Ramakant Rai, Mr. Sourabh Rath, Ms. Somesh Srivastava, Mr. Varun K. Tikmani, Mr. Aryan Agrawal and Ms. Drishti Kaushik, Advocates, for the Respondent-9/IRP in W.P.(C) 7369/2023 and CM Nos.28705-28706/2023.
Mr. Gaurav Mitra and Mr. Pai Amit with Mr. Nimish Vakil, Ms. Bhavna Duhoon & Mr. Rahat Bansal, Advocates, for the Petitioner in W.P.(C) 7663/2023 & CM APPL. 29679-29680/2023.
Mr. Rajesh Gogna, CGSC, for the Respondent-1/UOI in W.P.(C) 7663/2023 & CM APPL. 29679-29680/2023.
Mr. Anuj Berry, Mr. Siddharth Ranade, Mr. Ramakant Rai, Mr. Sourabh Rath, Ms. Somesh Srivastava, Mr. Varun K. Tikmani, Mr. Aryan Agrawal and Ms. Drishti Kaushik, Advocate, for the Respondent-3/IRP in W.P.(C) 7663/2023 & CM APPL. 29679-29680/2023 & for the Respondent-5/IRP in W.P.(C) 7773/2023 & CM APPL. 29997-29998/2023.
Mr. Nitin Sarin, Advocate, for the Petitioner in W.P.(C) 7774/2023 & CM APPL. 30005-30006/2023, 32445/2023.
Mr. Chetan Sharma, ASG, Mr. Apoorv Kurup, CGSC, Mr. Ojaswa Pathak & Mr. Akhil Hasija, Advocates, for the Respondent-1/UOI in W.P.(C) 7774/2023 & CM APPL. 30005-30006/2023, 32445/2023.
Ms. Avshreya Pratap Singh Rudy, Advocates, for the Respondent-2/DGCA in W.P.(C) 7774/2023 & CM APPL. 30005-30006/2023, 32445/2023.
Mr. Anuj Berry, Mr. Siddharth Ranade, Mr. Ramakant Rai, Mr. Sourabh Rath, Ms. Somesh Srivastava, Mr. Varun K. Tikmani, Mr. Aryan Agrawal, Mr. Shreyas Edupuganti and Ms. Drishti Kaushik, Advocates, for the Respondent-3/IRP in W.P.(C) 7774/2023 & CM APPL. 30005-30006/2023, 32445/2023.
Mr. Digvijay Rai, Ms. Anjana Gosain,Ms. Nippun Sharma, Ms. HetikaVadhera & Mr. Archit Mishra, Advocates, for the Respondent-3/AAI in W.P.(C) 8088/2023 & CM APPL. 31155-31156/2023.
Mr. Chetan Sharma, ASG, Mr. Apoorv Kurup, CGSC with Ms. Avshreya Pratap Singh Rudy and Mr. Akhil Hasija, Advocates, for the UOI in W.P.(C) 8088/2023 & CM APPL. 31155-31156/2023.
Headnote:(A) Aircraft Rules, 1937 - Sub-Rule (7) of Rule 30 - Cape Town Convention - Deregistration of Aircraft - Petitioners, lessors of Aircraft leased to Respondent, sought deregistration due to payment defaults by the lessee. DGCA rejected the application citing a moratorium by NCLT. Court found that DGCA, upon receiving proper documentation, has a mandatory obligation to deregister the Aircraft without lessee's consent. (Paras 11.1, 12-19)
(B) Insolvency and Bankruptcy Code, 2016 - Section 14 - Moratorium - The Court held that the moratorium does not apply to assets owned by third parties, thus supporting Petitioners' claim for immediate action on deregistration. (Paras 16.1, 17.1)
Facts of the case:
Petitioners terminated Lease Agreements with Respondent due to defaults in lease rental payments. The termination was communicated to DGCA alongside a request for deregistration of Aircraft under the Aircraft Rules. (Paras 3.7, 3.9)
Findings of Court:
The Petitioners made out a strong prima facie case for the urgent need for maintenance of Aircraft to prevent financial losses. The Court mandated deregistration of the Aircraft in accordance with the law. (Paras 20-21)
Issues: Whether DGCA has the authority to refuse deregistration based on an existing moratorium and whether the Petitioners' rights under the Lease Agreements supersede it.
Ratio Decidendi: The Court confirmed that subsections of the Aircraft Rules impose a clear obligation on the DGCA to deregister aircraft upon fulfillment of required conditions, which the DGCA failed to comply with.
Result: Interim relief granted allowing Petitioners to access Aircraft for maintenance and mandating deregistration. (Para 22)
| Table of Content |
|---|
| 1. petitioners are lessors of aircraft leased to respondent. (Para 1 , 2 , 3) |
| 2. petitioners' arguments centered on lease termination and deregistration. (Para 4 , 5) |
| 3. court's observations on interim application and necessity of maintenance. (Para 8) |
| 4. emphasis on terms of lease agreements and rights upon default. (Para 9 , 10) |
| 5. legal grounds for deregistration and implications of ibc. (Para 11 , 12) |
| 6. court's decision to maintain jurisdiction over administrative actions. (Para 13 , 14) |
| 7. importance of international treaties in domestic law. (Para 15) |
| 8. court's conclusions on the non-applicability of the moratorium. (Para 16) |
| 9. clarification of assets not covered under ibc. (Para 17) |
| 10. assessment of procedural failures and need for maintenance. (Para 18 , 19 , 20) |
| 11. conclusion of interim applications and directions given. (Para 21 , 22 , 23) |
JUDGMENT
Tara Vitasta Ganju, J.
CM No. 25806/2023 [Application for Interim Relief] in W.P.(C) 6569/2023
CM No. 26011/2023 [Application for Interim Relief] in W.P.(C) 6626/2023
CM No. 30784/2023 [Application for Interim Relief] in W.P.(C) 7214/2023
CM No. 28705/2023 [Application for Interim Relief] in W.P.(C) 7369/2023
CM No. 29679/2023 [Application for Interim Relief] in W.P.(C) 7663/2023
CM No. 29997/2023 [Application for Interim Relief] in W.P.(C) 7773/2023
CM No. 32445/2023 [Application for Interim Relief] in W.P.(C) 7774/2023
CM No. 31155/2023 [Application for Interim Relief] in W.P.(C) 8088/2023
PREFACE:
1. The Petitioners before this Court are the lessors and owners of Aircrafts that have been leased to Go Air (India) Ltd. [hereinafter referred to as "Respondent/Go Air"] who is being represented before this Court by the Resolution Professional [hereinafter referred to as `RP'] appointed by an order of the National Company Law Tribunal, Special Bench, New Delhi [hereinafter referred to as "NCLT"].
2. The grievance of the Petitioners as articulated in the present Petitions are inter-alia that the Respondent/DGCA has failed to deregister their Aircraft(s) in contravention of Sub-Rule (7) of Rule 30 of the Aircraft Rules, 1937 [hereinafter referred to as "the Aircraft Rules"].
BRIEF FACTS:
3. The facts, being similar in all the Petitions, have been collated and are briefly set forth below:
3.1 Separate Lease Agreement(s) were entered between the Respondent/Go Air and the Petitioners to lease one or more Aircraft to the Respondent/Go Air, on the terms and conditions as set forth therein [hereinafter referred to as "the Lease Agreement(s)"]. In all, the Respondent/Go Air had leased 30 Aircraft from these 8 Petitioners.
3.2. For ease of reference, certain relevant details qua the Petitioners are reproduced in the table below:
| S. No | Petition No. & Case Title and Interim Application Details | Details of the Aircraft Leased | Lease Agreement Date(s) | IDERA Date(s) | Lease Agreement Termination Date(s) | Date of De-registration Application lodged with DGCA | Whether an Appeal has been filed in the NCLAT? |
| 1 | WP(C) 6569/2023-ACCIPITER INVESTMENTS AIRCRAFT 2 LTD V UOI CM APPL. 25806/2023 FOR INTERIM RELIE | AirbusA320-214 MSN 5811 IRM VT-GOO | 04.10.13 | 23.02.18 | 02.05.23 | 04.05.23 | YES, appeal filed Co App (AT) (Ins) 631/23 |
| 2 | WP(C) 6626/2023-EOS AVIATION 12 (IRELAND) LTD. Vs. UOI CM APPL. 26011/2023 FOR INTERIM RELIEF | AirbusA320-271N MSN 11111 IRMVT-WDB | 08.09.22 | 03.10.22 | 02.05.23 | 03.05.23 | YES, appeal filed Co App (AT) (Ins) 633/23 |
| 3 | WP(C) 7214/2023-PEMBROKE AIRCRAFT LEASING 11 LTD VS DGCA AND ORS CM APPL. 30784/2023 FOR INTERIM RELIEF | Airbus A320NEO MSN 7858 IRMVT-WGN | 02.05.18 | 04.05.18 | 02.05.23 | 03.05.23 | NO |
| 4 | WP(C) 7369/2023-SMBC AVIATION CAPITAL LIMITED AND ORS Vs. UNION OF INDIA AND ORS. CM APPL. 28705/2023 FOR INTERIM RELIEF | 1. Airbus A320-214, MSN 5675 IRM VT-GON | 24.07.13 | 25.07.13 | 02.05.23 [For all Aircraft] | 04.05.23 [For all Aircraft] | YES, appeal filed Co App (AT) (Ins) No. 593 of 2023 |
| | 2. Airbus A320-271N MSN 7047 IRM VT-WGA | 02.05.16 | 25.05.16, |
| | 3. Airbus A320-271N MSN 7074 IRM VT-WGB | 02.05.16 | 20.06.16 |
| | 4. Airbus A320-271N MSN 8498 IRM VT-WGY | 09.10 | |
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