Go First Crisis: NCLT To Hear Two Insolvency Petitions Against Airline On May 8

One petition filed by SS Associates Services Pvt Ltd is with respect to a claim of around Rs 3 crore. It was providing transport services to the carrier.

As Go First awaits the National Company Law Tribunal (NCLT) ruling on its voluntary insolvency resolution plea, on Monday the tribunal will also hear two petitions requesting insolvency proceedings against the cash-strapped airline, reported PTI. With liabilities of Rs 11,463 crore and a financial crunch, the airline owned by the Wadia group, Go First, has requested voluntary insolvency resolution proceedings and an interim moratorium on financial obligations.

The National Company Law Tribunal (NCLT) heard the plea on Thursday and has reserved its order.

Citing lawyers, the news agency reported that NCLT will hear two insolvency petitions filed against the airline on May 8. One petition filed by SS Associates Services Pvt Ltd is with respect to a claim of around Rs 3 crore. SS Associates Services Pvt Ltd was providing transport services to the carrier, the report said. 

Another plea has been filed by a pilot claiming dues for his services provided to the airline. The amount involved is more than Rs 1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.

In its petition submitted to the National Company Law Tribunal on May 2, Go First requested for several directions. It sought orders to prohibit aircraft lessors from taking any recovery action, and to restrain the Directorate General of Civil Aviation (DGCA) and suppliers of essential goods and services from initiating any adverse actions.

The company also asked for a direction to the DGCA, the Airports Authority of India, and private airport operators not to cancel any departure and parking slots assigned to them. Additionally, Go First also wanted fuel suppliers to continue supplying fuel for aircraft operations and not to terminate the existing contractual arrangements.

Cash-strapped budget airline Go First announced on Friday the cancellation of all its flights until May 12, 2023, "due to operational reasons". The airline, which has been flying for more than 17 years, has also suspended the sale of tickets till May 15.

"We regret to inform that due to operational reasons, Go First flights scheduled till May 12, 2023, have been cancelled," read the official statement. The statement further said that a full refund would be issued to the original mode of payment shortly.