Go First resolution professional seek NCLT permission for refunds for cancelled tickets

Go First's resolution professional has approached the National Company Law Tribunal (NCLT), seeking permission to refund money to passengers whose tickets were cancelled after the cash-strapped airline suspended its operations on May 3. 

The resolution professional has filed a new application before the Delhi bench of NCLT, requesting the tribunal to permit the resolution professional/corporate debtor to make payment of refund to passengers whose airline tickets have been cancelled since May 3, 2023.

The application is scheduled to be heard by an NCLT bench comprising Mahendra Khandelwal and Rahul P Bhatnagar on Monday.

If permitted, this will bring relief for those air passengers, whose money is stuck with the troubled Go First, which stopped flying May 3, 2023.

In the first week of May, the airline had approached voluntarily for initiation of CIRP (Corporate Insolvency Resolution Process) against it, as it was unable to fly due to technical difficulties faced by the non-availability of engines from Pratt & Whitney. 

On May 10, the NCLT admitted the plea of Go First to initiate voluntary insolvency resolution proceedings. Subsequently, flights were cancelled, causing trouble for thousands whose money was stuck with the airline.  

Earlier, several air passengers had approached NCLT directly by writing e-mail requests/phone calls for refunds of cancelled tickets.

The NCLT had issued an advisory earlier this month on July 3, asking them to approach the RP to claim a refund as per the procedure of the Insolvency & Bankruptcy Code (IBC).

Last week, the NCLT rejected the claims of the lessors of aircraft and engines of Go First requesting to restrain it from commercial flying and held that aircraft are available for resumption of operations since aviation regulator DGCA has not deregistered them.

The tribunal held that physical possession of the aircraft/engines would be "indisputably" with Go First and lessors cannot claim possession during the CIRP of the carrier.

The tribunal also declined the lessors' pleas for inspection of their leased aeroplanes and engines and strongly reiterated that it was the responsibility of the Resolution Professional to maintain them at the highest levels of efficiency/safety.

(With inputs from PTI)