A Special Bench of the National Company Law Tribunal (NCLT) at New Delhi has admitted the insolvency plea of Go Airlines India. The NCLT has appointed an Interim Resolution Professional (IRP) to manage the affairs of the company and find a resolution to its financial difficulties.
It was submitted by the Applicant, Go Airlines that from the year 2022 onwards, the Corporate
Applicant started defaulting toward payments to vendors, and aircraft lessors and received notices from the lessors seeking payment
The IRP will work with the company’s management, creditors, and other stakeholders to assess the company’s financial situation and explore possible options to revive the company’s operations. The IRP will have a maximum period of 180 days to come up with a resolution plan, which will be submitted to the NCLT for approval.
If the resolution plan is approved by the NCLT, the company will be restructured and allowed to continue its operations. If no resolution plan is approved within the stipulated time, the company may be liquidated, and its assets will be sold to repay its creditors, which is highly unlikely in this matter
The admission of the Insolvency Plea by the NCLT has serious implications for Go Airlines India, as it indicates that the company is facing significant financial difficulties. The appointment of an IRP is the first step in the insolvency resolution process and is aimed at finding a viable solution to the company’s financial problems.
The Tribunal Bench of Justice Ramalingam Sudhakar and L N Gupta (Technical Member) also directed the IRP to ensure that retrenchment of employees is not resorted to as a matter of course. In any event, any such decision/event should be brought to the attention of this Adjudicating Authority.
It is further ordered that the Suspended Board of Directors and ExManagement of the Corporate Applicant/Corporate Debtor shall extend all necessary support and cooperation to the IRP and his team in keeping the Corporate Applicant/Corporate Debtor as “a going concern” and running
its operations/services smoothly.
Abhilash Lal, as IRP having IBBI Registration was directed to take charge of the CIRP of the Corporate Debtor with immediate effect. The IRP was also directed to take the steps as mandated under the IBC specifically under Sections 15, 17, 18, 20, and 21 of IBC, 2016, while imposing a moratorium in terms of Section 14(1) (a), (b), (c) & (d) of the Insolvency and Bankruptcy Code was declared for interim relief to the Airlines company.
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