The National Company Law Tribunal should adjudicate on the Ministry of Corporate Affairs’ October 3 notification exempting leased aircraft from insolvency-related moratorium, Go First has submitted to the Delhi High Court.

The Delhi High Court will now hear the matter next Friday. The airline has made the submission in response to government affidavit on the retrospective application of the rule. 

Go First, which is fighting to save its aircraft from deregistration, has opposed retrospective application of notification. The airline suspended its operations in May after declaring bankruptcy and lessors have moved the court to seize its planes.

“Notification cannot be given a retrospective effect in the facts of this case as otherwise  severe prejudice would be caused to the corporate debtor (Go First) and its stakeholders, the airline said in its affidavit.

Go First, which filed its submission through its resolution professional Shailendra Ajmera, has said there will be a serious anomaly in working of bankruptcy code if the notification is acted upon by the High Court.

Earlier this week, DGCA submitted that October 3 notification is procedural and necessary adjunct to section 14 (1) of the IBC and thus needs to be given effect from the date on which the section came into force. As such the notification would have to be considered to have a retrospective effect being clarificatory in nature.

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