Go First insolvency: The National Company Law Appellate Tribunal (NCLAT) has passed its order in the Go First crisis today. As per updates, the NCLAT has upheld the NCLT's order in the petitions on aircraft's lessors. The NCLT order had granted moratorium to Go First and refused to allow lessors to take back possession of the aircrafts.
In addition to this, the NCLAT has also asked IRP and the appellant to approach the adjudicating authority should they wish to seek any further relief. The NCLAT order in Go First crisis comes as a major relief for the struggling airlines as now, the lessors will not be able to take back possession of the aircrafts.
However, despite NCLAT upholding NCLT's order, it has been clarified that lessors have the liberty to raise issue of termination of lease, possession of Go First's aircrafts before the latter. The order has also allowed IRP to continue operating as per NCLT order, directing that the status of the airline must be maintained as a 'going concern.'
The matter was heard by a two-member bench led by Chairperson Justice Ashok Bhushan, who earlier reserved the order in order to seek any submission of other documents. For the unversed, the petition, challenging National Company Law Tribunal (NCLT's) order was filed by SMBC Aviation Capital Ltd, GY Aviation and SFV Aircraft Holdings in the NCLAT.
During the proceedings, an advocate representing SMBC Aviation reportedly argued that the Directorate General of Civil Aviation (DGCA) has the authority to cancel the lease within five working days, without requiring approval from Go First.
All three petitioners, who filed their plea in the NCLAT, against Go First insolvency crisis, have at least 21 aircrafts with the airlines.
In a previous NCLT hearing, the tribunal accepted Go First airlines' plea of voluntary resolution. While the cash crunch-hit airline had approached the NCLT on its own, its issues with Pratt & Whitney, were at the centre of the entire debacle.
Disclaimer: This is a developing story. Please check back for more details