NCLT Scheduled to Hear Two Insolvency Petitions Against Go First on May 8th
Go First is currently awaiting the NCLT ruling on its voluntary insolvency resolution plea, while also facing the prospect of two additional insolvency petitions. The Wadia group owns the crisis-ridden airline, burdened with liabilities amounting to Rs 11,463 crore and experiencing a severe financial crunch. In an effort to address these challenges, the airline has requested voluntary insolvency resolution proceedings and a temporary moratorium on its financial obligations.
Following the hearing of the plea on Thursday, the National Company Law Tribunal (NCLT) has reserved its order. Lawyers have stated that the tribunal will further consider the two insolvency petitions filed against the airline during the hearing scheduled for Monday.
However, two new insolvency petitions against the airline are now confronting the tribunal, which will present them before the Principal Bench of the NCLT during the upcoming hearing.
The first petition has been filed by SS Associates Services Pvt Ltd, a transport service provider that had been associated with Go First. The claim made in this petition amounts to approximately Rs 3 crore. A pilot filed the second petition, seeking dues worth over Rs 1 crore for the services rendered to the airline. These two petitions add further complexity to the already precarious situation faced by Go First.
NCTL
In its own petition filed on May 2nd, Go First had requested the tribunal to issue directions restraining aircraft lessors from initiating any recovery actions. Additionally, the airline sought to restrain the Directorate General of Civil Aviation (DGCA) and suppliers of essential goods and services from taking any adverse actions against them. Go First also implored that the DGCA, the Airports Authority of India (AAI), and private airport operators should refrain from canceling any departure and parking slots allotted to the company. Furthermore, the airline pleaded for uninterrupted fuel supply for its aircraft operations and requested that fuel suppliers not terminate the present contractual arrangements.
The current circumstances have led Go First to cancel all flights until May 9th, further exacerbating the challenges faced by passengers who had relied on the airline for their travel needs. The uncertainty surrounding the airline’s future has created significant disruptions in the aviation industry and has left employees, suppliers, and other stakeholders anxiously awaiting the outcome of the NCLT’s ruling.
The NCLT’s decision on the insolvency resolution plea and the outcome of the two additional petitions will play a crucial role in determining the future course of action for Go First. The airline’s fate hangs in the balance, as it desperately seeks a resolution to its financial woes and attempts to navigate through this tumultuous period. All eyes will be on the NCLT as it convenes on May 8th to hear these insolvency petitions, which hold significant implications for the airline’s survival and the wider aviation industry as a whole.
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