# In the matter of Accipiter Investments Aircraft 2 Limited vs. Union of India & Anr. W.P.(C) 6569-2023 and CM Nos.25806-25807-2023

> HC judgment dated 2023-07-05. Citation: TCN-2023-HC-00055. The case involves multiple petitions filed by aircraft lessors against the Directorate General of…

- **Court:** HC
- **Order date:** 5 Jul 2023
- **Citation:** TCN-2023-HC-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/accipiter-investments-aircraft-2-limited-vs-union-of-india-anr-wp-b0b8b8bd

## Summary

### Background

The case involves multiple petitions filed by aircraft lessors against the Directorate General of Civil Aviation (DGCA) and Union of India, seeking deregistration of aircraft leased to Go Air (India) Ltd. The lessors terminated the lease agreements due to defaults in lease rental payments by Go Air. Go Air initiated insolvency proceedings before the National Company Law Tribunal (NCLT), which imposed a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), preventing the deregistration of the aircraft. The lessors contend that the DGCA is obligated to deregister the aircraft under Rule 30(7) of the Aircraft Rules, following the Cape Town Convention and submission of Irrevocable De-Registration and Export Request Authorisation (IDERA).

## Facts

The Petitioners are lessors and owners of aircraft leased to Go Air (India) Ltd. Go Air defaulted on lease rental payments, leading the Petitioners to terminate the lease agreements. The Petitioners submitted Irrevocable De-Registration and Export Request Authorisations (IDERAs) to the Directorate General of Civil Aviation (DGCA) for deregistration of the aircraft. Go Air initiated insolvency proceedings under Section 10 of the Insolvency and Bankruptcy Code (IBC), and the NCLT imposed a moratorium under Section 14 of the IBC, preventing deregistration. The Petitioners filed writ petitions seeking a mandamus to compel the DGCA to deregister the aircraft under Rule 30(7) of the Aircraft Rules, which mandates deregistration within five working days of receiving an IDERA.

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## Issues and analysis

### Issue 1: Whether the DGCA is obligated to deregister the aircraft under Rule 30(7) of the Aircraft Rules, …

**Ratio:** Rule 30(7) of the Aircraft Rules mandates the Central Government to cancel the

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**Reasoning:** The court relied on the judgment in the Awas case, which held that with the insertion of

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**Interpretation:** The court interpreted Rule 30(7) as imposing a mandatory duty on the DGCA to

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

- **Judges:** Tara Vitast…
- **Appellants:** ACCIPITER…
- **Respondents:** Go Air (India)…; Union of…

## Timeline

- **2008-03-31 — India becomes a signatory to the Cape Town…**: India became a signatory to the Cape…
- **N/A — Execution of Lease…**: Separate Lease Agreement(s) were entered between the Respondent/Go Air and the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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