Go First at NCLT: Airline asks tribunal to pass order on insolvency plea urgently

Go First, that filed a plea for insolvency proceedings a week ago, asked the National Company Law Tribunal (NCLT) on Monday to pass an order on the same urgently. It cited lessors’ attempts to take back its planes. 

Go First lawyers told the tribunal to pass an order urgently as lessors had moved to repossess the planes even as the insolvency proceedings are underway. GY Aviation Lease, SMBC Aviation Capital and Pembroke Aircraft Leasing submitted requests to aviation regulator to take back at least 20 planes.

On Thursday, the tribunal started hearing the airline’s plea, and reserved an order on the same. 

During last week’s hearing the airline had sought intervention from the tribunal in restraining lessors to take back its aircraft, as well as from the Director General of Civil Aviation (DGCA) from taking any adverse action against it. However, while the hearing was on, DGCA asked the airline to process the refund for the passengers who were impacted from Go First’s flight cancellations. 

Also read: Go First at NCLT: What are the airline’s allegations against Pratt & Whitney?

Go First also argued that the purpose of the Insolvency and Bankruptcy Code (IBC) is to revive the airline. It also sought the appointment of a resolution professional for the airline’s turnaround. Additionally, Go First sought an interim moratorium, without which, it said, the airplanes will be seized and the functioning of the airline will be hampered. 

However, the NCLT said that there is no provision of interim moratorium under IBC, and the tribunal would consider an interim moratorium only if its plea is admitted. 

Go First had filed for insolvency, blaming faulty Pratt & Whitney engines for the grounding of about half of its fleet. 

Meanwhile, the Los Angeles-based engine-maker said in legal documents that the airline’s claim of defective engines causing its demise was ‘astounding’ and without any evidence. It said that the low-cost airline failed because of poor management and events like the COVID-19 pandemic that took a toll on the aviation industry. 

(With Reuters inputs)

Also read: Go First to go on legal war with Pratt & Whitney; CEO Kaushik Khona says airline seeking $1.1 billion in damages

Also read: Go First insolvency: Delhi-Mumbai fares jumps 40%, Delhi-Leh flight price up 5x to Rs 28K, Srinagar-Chandigarh Rs 26K