NCLAT Upholds Liquidation of Go Airlines [Read Order]
The Tribunal rejected the appeal but allowed the appellant to submit a compromise and arrangement plan in accordance with Regulation 2B of the Liquidation Process Regulation
![NCLAT Upholds Liquidation of Go Airlines [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/NCLAT-NCLAT-Upholds-Liquidation-of-Go-Airlines-Liquidation-of-Go-Airlines-Go-Airlines-ITAT-Delhi-taxscan.jpg "NCLAT Upholds Liquidation of Go Airlines [Read Order]")
The National Company Law Appellate Tribunal (NCLAT), New Delhi bench upheld the liquidation by finding that, in the absence of a compliant resolution plan, the Committee of Creditors (CoC), acting in accordance with Section 33(2) of the Insolvency and Bankruptcy Code, 2016, and using its commercial judgment, was within its rights to decide to liquidate the Corporate Debtor, Go Airlines...
The National Company Law Appellate Tribunal (NCLAT), New Delhi bench upheld the liquidation by finding that, in the absence of a compliant resolution plan, the Committee of Creditors (CoC), acting in accordance with Section 33(2) of the Insolvency and Bankruptcy Code, 2016, and using its commercial judgment, was within its rights to decide to liquidate the Corporate Debtor, Go Airlines (India) Ltd.
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The Tribunal underlined that, under Regulation 2B of the Liquidation Regulations, the resurrection of the Corporate Debtor through a scheme of compromise or arrangement under Section 230 of the Companies Act, 2013 remains open for the first ninety days from the date of the liquidation decision.
For the past 17 years, Go Airlines (India) Ltd. ("Corporate Debtor"), which was founded on April 29, 2004, has operated low-cost airlines under the "GoAir" brand. The name was changed to "GoFirst." The Corporate Debtor began to fall behind on payments to aircraft lessors and vendors in 2022. In the year 2022, 34 percent of airplanes were grounded. In order to file an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the NCLT, New Delhi, the corporate debtor ceased operations and passed a resolution. On May 10, 2023, the NCLT approved the Section 10 application.
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On July 23, 2024, the Committee of Creditors ("CoC") decided to liquidate the corporate debtor. No compatible Resolution Plan was received, according to the CoC. With a 100% voting share, the resolution for the corporate debtor's liquidation was approved. By the contested ruling of January 20, 2025, the NCLT granted the plea for liquidation and named Mr. Dinkar T. Venkatasubramanian as the liquidator. The contested order was the subject of the appeals.
The Tribunal comprising of Justice Ashok Bhushan (Chairperson), Barun Mitra (Technical Member) and Arun Baroka (Technical Member) have held that the decision of the CoC to liquidate the Corporate Debtor was clearly in exercise of powers vested in the CoC under Section 33(2).
It was mentioned that "Assessment of sale as a going concern" is covered under Regulation 39C. In accordance with Regulation 39C(1), the CoC may suggest that the Liquidator first look into selling the corporate debtor as a going concern or selling the company as a going concern in accordance with Regulation 32(e) of the IBBI (Liquidation Process) Regulation 2016.
The Tribunal rejected the appeal, but allowed the appellant to submit a compromise and arrangement plan in accordance with Regulation 2B of the Liquidation Process Regulation. Within ninety days of the date of the liquidation decision dated January 20, 2025, or until April 20, 2025, the Tribunal declared that the compromise or agreement could be taken into consideration.
To Read the full text of the Order CLICK HERE
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