Active Stocks
Thu Sep 21 2023 15:54:10
  1. Tata Steel share price
  2. 127.8 -0.39%
  1. HDFC Bank share price
  2. 1,553.6 -0.66%
  1. NTPC share price
  2. 238.95 -1.1%
  1. Power Grid Corporation Of India share price
  2. 201.8 -1.42%
  1. ITC share price
  2. 447.4 -1.24%
Business News/ Companies / News/  NCLT accepts Delhivery notice to declare Go First's insolvency fraudulent and malicious: Report

The National Company Law Tribunal (NCLT) on Thursday (June 8) accepted logistic courier service provider Delhivery's notice to declare Go First's voluntary insolvency resolution as fraudulent and malicious, media reports suggested.

As per an Economic Times report (ET), NCLT accepted Delhivery's notice seeking Go First's voluntary insolvency resolution as fraudulent and malicious. NCLT gave the interim resolution professional (IRP) of Go First two weeks to reply.

The report further quoted Delhivery's counsel stating that the Wadia-group airline had received 57 lakh on May 2 as payment in advance for future services, despite being aware that they were planning to file for insolvency. Under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016, fraudulent and malicious initiation of insolvency proceedings can invite a penalty of 1 lakh to 1 crore.

Earlier Mint reported that the cash-strapped budget airline Go First had sought an interim moratorium as the Delhi chapter of the NCLT began hearing its voluntary insolvency plea on May 4. However, NCLT informed the Wadia group-owned airline that there is no scope for an interim moratorium.

Meanwhile, the Directorate General of Civil Aviation (DGCA) is currently assessing the flight resumption plan submitted by bankrupt airline Go First, civil aviation minister Jyotiraditya Scindia said on Wednesday (June 7).

Read more: DGCA sought clarity from Go First on flight resumption plan: Scindia

The Mumbai-based airline suspended operations from May 3, having voluntarily filed for insolvency in the National Company Law Tribunal a day earlier. The low-cost airline had a market share of around 7 per cent as of March with over 300 flights a day around the time it suspended operations.

Meanwhile, airfares have soared since the Wadia Group-backed airline suspended flights. Data from the travel website Ixigo showed last-minute airfares for flights on routes with a strong presence of Go First, such as Delhi-Pune have risen to approximately 16,000 from a little over 6,000 in the last week of April. Spot airfares for flights to Ahmedabad from Delhi have also become dearer, rising to around 16,000 from around 3,000 in the last week of April.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Updated: 09 Jun 2023, 08:32 AM IST
Next Story
Recommended For You
Switch to the Mint app for fast and personalized news - Get App