The National Company Law Appellate Tribunal (NCLAT) on Friday dismissed appeals challenging the National Company Law Tribunal’s (NCLT) order for the liquidation of Go First Airways.
The NCLAT, led by Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka, found no issues with the NCLT’s decision, and the appeals were therefore dismissed.
Appeals Filed
The appeals were filed by Busy Bee Airways, Bhartiya Kamgar Sena Mumbai, and Captain Arjun Dhawan, among others. Busy Bee Airways, which had previously placed a bid for the airline, argued that the Committee of Creditors (CoC) had decided on liquidation before they could place a renewed bid for the airline.
Go First Airways
Go First Airways filed for voluntary insolvency on May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC), seeking to enter the Corporate Insolvency Resolution Process (CIRP). The NCLT accepted the request on May 10, 2023, and appointed a Resolution Professional (RP) to manage the airline’s affairs during the insolvency process.
Dispute With Aircraft Lessors
In response to the insolvency proceedings, the airline’s lessors appealed to the NCLAT, arguing that their aircraft had been unfairly held under a moratorium despite the termination of their leases prior to the initiation of the proceedings. On May 22, 2023, the NCLAT upheld the NCLT’s decision and instructed the lessors to seek clarification regarding the moratorium from the NCLT.
Subsequently, the lessors approached the Delhi High Court, requesting the Directorate General of Civil Aviation (DGCA) to de-register the airline’s aircraft. Initially, the DGCA resisted this request, citing the moratorium, but a Ministry of Corporate Affairs clarification in October 2023 allowed for exemptions related to aircraft transactions under the IBC.
Delhi High Court Order
In April 2024, the Delhi High Court ordered the DGCA to de-register Go First’s fleet. This process was completed by early May 2024, and the maintenance and export of the de-registered aircraft were assigned to the lessors under the Aircraft Rules.
Liquidation Decision
By September 2024, with no aircraft available and no feasible revival options, the Committee of Creditors (CoC) opted to liquidate Go First Airways. The liquidation application was filed in September 2024, and in October 2024, the NCLT raised concerns regarding the appointment of Shailendra Ajmera as the liquidator. The tribunal also questioned the approval of 3rd-party funding for arbitration at the Singapore International Arbitration Centre (SIAC).
Subsequently, Dinkar Venkatasubramanian was named as the liquidator, and the NCLT approved this decision.
On January 20, 2025, the NCLT formally called for the liquidation of Go First Airways. Busy Bee Airways was represented by Senior Advocate Krishnendu Dutta and his legal team, while the liquidator was represented by Senior Advocate Ritin Rai.
The Committee of Creditors was represented by a team of advocates led by Dheeraj Nair.
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