A Bench of judicial member Justice (retired) PN Deshmukh and technical member KK Vohra found that if the airline is not allowed to have access to the premises of the Mumbai Airport, it would have difficulty in maintaining aircrafts, engines, and auxiliary power units.
The NCLT agreed with the applicant-airline that such maintenance activities are necessary to prevent deterioration in the value of the assets, as they need to be preserved for successful implementation of resolution plan of the applicant under the Insolvency and Bankruptcy Code.
“Even otherwise, it is to be noted that one of the principal objectives of the Code is to provide for revival of the CD (Corporate Debtor) and every attempt ought to be made to revive the CD and Liquidation being the last resort.
In view of the above and as it is also the case of the Applicant that despite cessation of Airline operations of the CD, the erstwhile Resolution Professional had, with the approval of the Committee of Creditors, retained a team of personnel to look for the maintenance of aircrafts and engines placed at MIAL Airport including Hangar,” the Court observed, before holding that the applicant had made out a case in its favour.
Source: Barandbench
