National Company Law Appellate Tribunal upholds NCLT's Go First insolvency order
May 22, 2023
New Delhi [India], May 22 : The National Company Law Appellate Tribunal (NCLAT) on Monday upheld the National Company Law Tribunal (NCLT) order which had admitted Go First Airlines' voluntary plea for insolvency.
It disposed of the lessors' petition and asked them to file an appeal before the NCLT.
The IRP (Interim Resolution Professional) has been allowed to proceed with the insolvency resolution process.
The NCLAT has asked the appellant (the three firms or lessors) to approach the adjudicating authority for any further relief sought by them.
The order of the NCLAT seems to be a big relief for the cash-strapped airlines Go First as the lessors have been restrained from taking possession of their aircraft.
The NCLAT, which had reserved its order on May 15, passed the order after hearing a batch of pleas filed by SMBC Aviation Capital Ltd, GY Aviation, and SFV Aircraft Holdings.
Go First Airlines has cancelled all its flights till May 26, citing operational reasons. Earlier, the airlines had cancelled flights till May 19.
"We regret to inform that due to operational reasons, Go First flights scheduled till 26th May, 2023, have been cancelled. We apologise for the inconvenience caused by flight cancellations," Go First stated.
The National Company Law Tribunal (NCLT) in its judgement on May 10 admitted the plea of Go First Airlines for insolvency proceedings.
The budget airline on May 4 had moved National Company Law Tribunal (NCLT), seeking protection under bankruptcy law. It had also sought an interim moratorium to prevent the seizure of its 26 aircraft by aircraft lessors.
In addition, the airline sought directions for the appointment of an insolvency resolution process (IRP).
