The National Company Law Tribunal (NCLT) has issued a notice to the Insolvency Resolution Professional (IRP) of crisis-hit Go First over a plea filed by supply chain operator Delhivery.
The Delhivery had moved the tribunal on Thursday and said the debt-ridden airline intentionally took payments from them despite knowing that it was filing for voluntary insolvency.
The tribunal admitted Delhivery's notice and gave Go First’s interim resolution professional of the Wadia-group airline, Abhilash Lal, two weeks to reply.
In its application, the logistics company said that the airline received over Rs 1.58 crore from them for delivering domestic cargo consignment but never acted on it.
"Go First received Rs 57 lakh on May 2 from Delhivery as advance for future services, knowing fully well they were filing for insolvency," said the counsel for Delhivery. On May 2, the airline had filed for insolvency with the tribunal.
Under Section 65 of the Insolvency and Bankruptcy Code (IBC), 2016, fraudulent and malicious initiation of insolvency proceedings can invite a penalty of Rs 1 lakh to Rs 1 crore.
A two-member bench of the NCLT directed the IRP to file a reply within two weeks and listed the matter on July 24 for the next hearing.
Go First is presently going through Corporate Insolvency Resolution Process (CIRP). In its insolvency application, the crisis-hit airline said it was “forced” to apply for resolution and protection under Section 10 of IBC due to the ever-increasing failure of Pratt and Whitney engines that power its fleet.
In its bankruptcy filing to NCLT, Go First said it owes Rs 6,521 crore ($797.38 million) in total to Bank of Baroda, IDBI Bank, and Deutsche Bank, which are its financial creditors.
The airline has further said it has a total liability of about Rs 11,463 crore to banks, other creditors, vendors, and others.
The NCLT on May 10 admitted the plea of Go First to initiate voluntary insolvency resolution proceedings and appointed Lal of Alvarez & Marsal as IRP of the airline.
Earlier this week, the tribunal directed Lal to file a reply within one week over the petitions filed by three lessors -- BOC Aviation (Ireland), Jackson Square Aviation Ireland and Engine Lease Finance BV -- seeking possession of their aircraft and engines.
The lessors contended that they had terminated their lease before the airline's insolvency plea was admitted.
(With agency inputs)
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