NCLAT upholds NCLT decision allowing Go First's insolvency proceedings; directs certain modifications to tribunal's order. NCLAT on Monday upheld the insolvency proceedings against cash-strapped airline Go First in a setback to efforts of its lessors to repossess their aircraft.The National Company Law Tribunal (NCLT) admitted the airline's voluntary plea insolvency resolution proceedings on May 10. Abhilash Lal has been appointed as the Interim Resolution Professional (IRP) to manage the affairs of the carrier.
A two-member NCLAT bench asked several aircraft lessors of Go First opposing insolvency, to approach National Company Law Tribunal (NCLT) for any remedy.
"The order dated May 10, 2023 allowing insolvency is upheld," said the NCLAT bench headed by Chairperson Justice Ashok Bhushan.
The direction came on a batch of four petitions filed by aircraft lessors opposing Go First's insolvency proceedings. The lessors are SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC)
Go First, which is undergoing insolvency resolution proceedings, stopped flying from May 3. Further, aviation regulator DGCA had directed the cash-strapped airline to stop bookings till further orders.
In an update on its website, the budget carrier, said that due to operational reasons, "flights until 26th May 2023 are cancelled".
"A full refund will be issued to the original mode of payment shortly... as you are aware, the company has filed an application for immediate resolution and revival of operations. We will be able to resume bookings shortly," it added.
Meanwhile, a claim management portal 'gofirstclaims.in/claims' has been launched for the Corporate Insolvency Resolution Process (CIRP) of Go First.
