In the case of Go First, Airline National Company Law Appellate Tribunal has recently reserved its verdict on 3 lessors’ appeals challenging the order passed by the National Company Law Tribunal of the interim stoppage & insolvency resolution proceedings.
Justice Ashok Bhushan led bench of the National Company Law Appellate Tribunal (NCLAT) Court on Monday evening that reserved the judgment for May 22.
Justice Bhushan-led bench of the NCLAT stating that, “We are reserving the judgment for May 22.”
The appeal was filed by 3 Go first lessors SMBC Aviation Capital Ltd, SFV Aircraft Holdings, and GY Aviation Lease Court Ltd before the NCLAT Court against Go First’s voluntary insolvency resolution proceedings.
Therefore, the lessors were opposing the NCLT judgment which had gone in favor of Go First and given a go-head for Interim Resolution Professional and interim moratorium.
On Friday, NCLAT deferred the matter pertaining to Go First lessors’ petition seeking a stay on a bankruptcy court’s order allowing voluntary insolvency of the low-cost airline to Monday.
On May 10, the NCLT admitted Go First’s plea for spontaneous insolvency that admitted for the initiation of Corporate Insolvency Resolution Process (CIRP) proceedings. NCLT granted Go First protection under a moratorium from the recovery by lessors & lenders.
In its orders, NCLT stated that, “We admit the plea of Go Airlines for insolvency proceedings. It said that we appoint Abhilash Lal as IRP (insolvency resolution professional).”
The order stated that “The suspended board of directors will cooperate with the IRP. Suspended directors are also ordered to deposit ₹ 5 crores to make the immediate expenses.”
Also, the budget airline cancelled all the flights’ operations till May 19 due to operational reasons, “Go First flights until 19th May 2023 are canceled. We apologize for the inconvenience caused & request customers.”
US-based jet manufacturers Pratt and Whitney (P-W) has defended itself against the budget airline’s claim that P-W is responsible for the financial condition & bankruptcy.
Pratt and Whitney spokesperson told media that, “Go First’s allegations that Pratt and Whitney is responsible for its financial condition are without merit. Pratt and Whitney will vigorously defend itself against Go’s claims, and is pursuing its own legal recourse.”
