In a significant development in the matter of Janus Aviation Pvt Ltd V/S Mumbai International Airport Ltd and Others for aviation and legal circles, the Bombay High Court has issued a ruling in favor of Janus Aviation Pvt Ltd, the petitioner in a writ petition, granting them access to their leased ground services equipment at Chhatrapati Shivaji Maharaj International Airport, Mumbai. The order, delivered on August 1, 2024, addresses a complex dispute involving the leased equipment, unpaid charges, and the ongoing insolvency proceedings of Go Airlines India Limited.
Background of the Case:
The writ petition was filed by Janus Aviation Pvt Ltd, which sought directions for the removal of their leased ground services equipment from the Mumbai airport. The equipment, which had been leased to Go Airlines (Respondent No. 6), was being held at the airport premises. The airline, currently undergoing a Corporate Insolvency Resolution Process (CIRP), had not paid its parking and other associated charges to Mumbai International Airport Ltd (Respondent No. 1).
The Resolution Professional managing Go Airlines' insolvency had confirmed that the airline had no objection to the return of the leased equipment. However, the primary issue stemmed from the airport authority's refusal to release the equipment due to outstanding dues owed by Go Airlines.
The Court's Ruling:
After hearing arguments from both sides, the court noted the unusual situation in which an airport authority was withholding third-party equipment due to the dues of a different entity. The court questioned the propriety of such action, as it saw no legal justification for the airport holding onto equipment that did not belong to Go Airlines.
In light of this, Mumbai International Airport Ltd, through its legal counsel, conceded that it had no objection to the petitioner retrieving its equipment. This was stated without prejudice to the airport's right to pursue its claim for parking charges and other fees owed by Go Airlines in the context of the ongoing CIRP.
The court directed that the petitioner be allowed to take possession of the equipment listed in Exhibit P of the petition. The order also clarified that the airport's claim for dues against Go Airlines remained intact, and the court emphasized that this decision did not prejudge the airport’s rights in the ongoing insolvency process.
Procedural Details and Compliance:
To facilitate the petitioner’s access to the equipment, the court also addressed logistical concerns, such as the issuance of security passes for the petitioner’s representatives. The airport authority committed to issuing the necessary passes within 24 hours of the petitioner's request, ensuring that the equipment could be retrieved without undue delay.
The court further set a clear timeline for the action, directing that the petitioner’s representatives take possession of the equipment on July 31, 2024. The authorities were instructed to expedite the process of issuing the required security passes to ensure compliance with the order.
Conclusion:
The Bombay High Court’s order underscores the importance of resolving legal disputes related to third-party property and contractual obligations, particularly in the context of corporate insolvency. The ruling, while allowing Janus Aviation to reclaim its leased equipment, also leaves room for the Mumbai International Airport to continue pursuing its dues from Go Airlines.
This decision offers a precedent for future cases involving conflicting claims over leased assets, especially when the asset owner is not the party with outstanding financial obligations. The case also highlights the court’s role in balancing competing interests and ensuring that the rights of innocent parties are upheld, even amidst complex insolvency proceedings.
As the case progresses, all parties will need to comply with the court’s order, and the matter will remain under judicial scrutiny to ensure that the terms are faithfully executed.
