The National Company Law Tribunal (NCLT) was informed on Thursday by bankrupt airline Go First that it does not object to the owner, Engine Lease Finance BV, being given access to the four engines it possesses.
Advocate Diwakar Maheshwari, the Resolution Professional’s (RP) attorney, informed the tribunal that the process of returning one engine had already begun.
The tribunal has now mandated that the lessor receive access to all four engines.
Representing the engine lessor, advocate Anandh Venkatramani informed the tribunal that their appeal might be rejected due to the High Court’s directive for the Directorate General of Civil Aviation (DGCA) to deregister all 54 of its aircraft. He clarified that it is final because Go First decided not to contest it.
Other lessors have requested more time to get instructions regarding the case’s next steps, and on August 9 the subject will be heard once more.
On June 12, the National Company Law Tribunal (NCLT) granted Go First a last sixty days to finish the corporate insolvency resolution procedure (CIRP).
This postponement will end on August 3. The Committee of Creditors (CoC) of the airline and the resolution specialist were instructed by the tribunal to rigorously follow the deadline, since there would be no more extensions granted.
The Central Bank of India, IDBI Bank, and Bank of Baroda are among the airline’s lenders.
Under Section 10 of the Insolvency and Bankruptcy Code (IBC), Go First filed for voluntary insolvency on May 2, 2023. On May 10, 2023, the NCLT accepted its insolvency petition.
The airline that was grounded joins the ranks of significant carriers like Jet Airways and Kingfisher Airlines, which collapsed in 2012 and 2019, respectively, highlighting the difficulties involved in navigating India’s aviation sector.
Growing Issues
– Go First has already begun the process of sending back one engine.
– On June 12, NCLT granted the airline a 60-day extension to finish the insolvency procedure.
– The Central Bank of India, IDBI Bank, and Bank of Baroda are among the airline’s lenders.