SMBC Aviation Capital Appeals NCLT Decision in Go First’s Insolvency Case
Aircraft lessor SMBC Aviation Capital Ltd filed an appeal with the National Company Law Appellate Tribunal (NCLAT) on Wednesday, challenging the decision of the National Company Law Tribunal (NCLT) to grant Go First’s request for voluntary insolvency resolution proceedings. SMBC Aviation Capital, previously known as RBS Aviation Capital, is one of the largest aircraft leasing companies worldwide.
Following the NCLT’s approval of Go First’s plea, SMBC Aviation Capital’s legal representative approached the NCLAT and presented the appeal before a panel led by Chairman Justice Ashok Bhushan.
After listening to the arguments put forth by the aircraft lessor, the NCLAT Chairman instructed that the matter be scheduled for a hearing on Thursday.
According to the cause list, the plea of SMBC Aviation Capital is scheduled for a hearing on Thursday. The two-member bench presiding over the case consists of Justice Ashok Bhushan and Barun Mitra.
Go First
In the past week, multiple lessors have approached the aviation regulator DGCA seeking deregistration and repossession of a total of 45 aircraft belonging to Go First.
During the recent NCLT hearing, various aircraft lessors, including SMBC Aviation Capital Ltd, Narmada Aviation Leasing, Yamuna Aviation Leasing, GAL MSN, and GY Aviation Lease, expressed their opposition to Go First’s plea.
The lessors also expressed their intention to file an application under Section 65 of the IBC, which deals with the fraudulent or malicious initiation of proceedings.
The acronym IBC stands for the Insolvency and Bankruptcy Code.
The NCLT stated on Wednesday that there are no restrictions on considering or adjudicating a Section 65 application even after the initiation of the insolvency resolution process.
In view of the urgency of the current case, the NCLT emphasized the importance of protecting and maximizing the value of the assets in accordance with the objectives of the IBC, as well as considering the employees involved and the broader public interest. The NCLT asserted that waiting for the filing of the Section 65 application would not be appropriate from a judicial standpoint.
As of May 3, Go First has ceased its flight operations, and the aviation regulator DGCA directed the airline to halt ticket sales until further notice.
Earlier on the same day, the principal bench of the NCLT in Delhi appointed an interim resolution professional to oversee the affairs of Go First and also suspended its board.
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