The National Company Law Tribunal ( NCLT ) has postponed the hearing on the insolvency plea of Go Airlines ( India ) ltd, the grounded airline, to July 11, 2024. The tribunal held that it needed time for further examination of the recent developments, particularly the ramifications of the Delhi High Court’s order, before reaching a verdict.
Go First, formerly known as Go Airlines (India) Limited, filed for insolvency in May 2023, following a cascade of financial woes attributed to faulty engines supplied by US-based Pratt & Whitney. The airline, founded in 2005 and previously backed by the Wadia Group, ceased operations shortly after filing for insolvency, leaving creditors grappling with outstanding dues amounting to over Rs 11,463 crore.
Engine lessors, who sought to reclaim their assets, faced further delays as the tribunal deliberated on the implications of the Delhi High Court’s directive to deregister all 54 aircraft leased by Go First. The Delhi High Court on April 26 directed the DGCA to forthwith, and no later than the next five working days, process the deregistration applications filed by the lessors in respect of all 54 aircrafts.
The court ordered that all maintenance tasks in respect of the aircrafts shall be undertaken by the lessors and all of their authorized representatives up to and until the time the aircrafts are de-registered and exported, in pursuance of Rule 32A of the Aircraft Rules. However, the Delhi High Court order did not include engines in its ruling because their lessors had not petitioned that particular court.
During the hearing, the Resolution Professional representing Go First declined to provide clarity on the airline’s future course of action following the Delhi High Court’s ruling, which left the company without any aircraft.
The two-member bench of Justice Mahendra Khandelwal and Dr. Sanjeev Ranjan acknowledged the urgency expressed by engine lessors and listed the matter on July 11, 2024.
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