The National Company Law Tribunal (NCLT) today reserved its order on crisis-hit airline Go First’s plea following the proceeding of voluntary insolvency resolution.
The day-long hearing, during which the Wadia group-controlled airline sought the initiation of insolvency resolution proceedings and an interim moratorium on its financial commitments, was finished by the two-member bench chaired by President Justice Ramalingam Sudhakar.
However, the opposition of aircraft reduces the airline’s request stating that insolvency proceedings that can’t be initiated without hearing them.
Senior Advocate Neeraj Kishan Kaul, representing the Go First, stated the objective of Insolvency & Bankruptcy Code (IBC) that is to be ensured with the company.
Cash-strapped ‘Go First’ has call off all the flights till May 9 due to operational reasons.
The Directorate General of Civil Aviation (DGCA) stated that the airline has suspended tickets sale till May 15 and is working to refund/reschedule existing bookings for the future dates.
Go First CEO Kaushik Khona told media that, “Total value of refunds not yet arrived at. 77,000 passengers affected due to cancellations in the past 30 days.”
The DGCA issued a show cause notice to the airline after it suddenly decided to cancel flights for 3 days starting May 3.
The regulator said in a statement that, “Go First has intimated that they have suspended sale of their flights till 15 May 2023 and are working to refund or reschedule for future dates, the passengers already booked to fly with them.”
After examining reply filed by Go First, the watchdog issued an order stating, “under the prevailing regulations directing them to process the refunds to passengers as per the timelines specifically stipulated in the relevant regulation.”
Also, the regulator stated that it is effected for minimizing passenger inconvenience in view of the abrupt decision by the Go First for suspending their scheduled operations without any prior intimation.
