Following a request from the airline’s Committee of Creditors (CoC), the National Company Law Tribunal (NCLT) ordered Go First Airways to be liquidated, according to a story published on Monday by Bar and Bench.
“Liquidation is ordered,” the NCLT panel, which is composed of Technical Member Dr. Sanjeev Ranjan and Judicial Member Mahendra Khandelwal, confirmed the ruling.
On May 2, 2023, Go First voluntarily submitted an application to be admitted to the Corporate Insolvency Resolution Process (CIRP) in accordance with Section 10 of the Insolvency and Bankruptcy Code (IBC). On May 10, the NCLT accepted the plea and designated a Resolution Professional (RP) to oversee the airline’s activities.
After this, the lessors of the airline filed an appeal with the National Company Law Appellate Tribunal (NCLAT), contesting the moratorium that barred them from recovering assets, even though the leases had been terminated prior to the start of the proceedings. On May 22, 2023, the NCLAT affirmed the NCLT’s decision and instructed lessors to inquire about the moratorium.
The Directorate General of Civil Aviation (DGCA) first objected because of the moratorium, but the lessors later petitioned the Delhi High Court to deregister the aircraft. On October 4, 2023, the Ministry of Corporate Affairs confirmed, however, that transactions involving airplanes and related assets would not be subject to Section 14(1) of the IBC. After the DGCA gave its approval, Go First’s fleet was deregistered in early May 2024, and the lessors took over the aircraft’s maintenance and exporting.
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