DGCA clarifies notification exempting moratorium on leased planes to apply retrospectively

The Ministry of Corporate Affairs’ October 3, 2023 notification exempting leased aircraft and engines from moratorium under the provisions of the Insolvency and Bankruptcy Code (IBC) will have retrospective effect, said the Directorate General of Civil Aviation (DGCA) in an affidavit in the Delhi High Court. It said that the notification was a necessary adjunct to the IBC and should be given retrospective effect.  As a result, GoFirst Airlines faces obstacles in its revival efforts, with aircraft lessors seeking deregistration.  Lessors plan to make fresh applications for deregistration armed with this clarification, but repossession will have to wait for the High Court’s order, as per a report.