Go First Insolvency: NCLAT To Pass Order On Aircraft Lessors' Petitions On May 22

The NCLAT bench also asked the parties to submit additional documents, if any, in the next 48 hours

The National Company Law Appellate Tribunal (NCLAT) will pass its order on May 22 on petitions filed by three aircraft lessors against Go First's voluntary insolvency resolution proceedings. A two-member bench headed by Chairperson Justice Ashok Bhushan on Monday reserved its order after completing the hearing on the the three petitions.

The tribunal bench also asked the parties to submit additional documents, if any, in the next 48 hours. The appellate tribunal was hearing a batch of petitions filed by SMBC Aviation Capital Ltd, GY Aviation and SFV Aircraft Holdings.

All three lessors have leased out around 21 aircraft to Go First. So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First's 45 planes.

Go First stopped flying from May 3.

Last week the Delhi-based principal bench of the NCLT appointed an interim resolution professional to look after the affairs of Go First and also suspended its board as part of the insolvency resolution process. 

Meanwhile, about 50 requests to take back as many leased planes from two Indian airlines in less than two weeks. Petitions from lessors seeking to enforce rights under international norms and concerns over a possible spike in the risk premium for leasing aircraft for domestic carriers, the PTI reported. Go First being admitted for insolvency resolution proceedings on a voluntary plea and subsequent moratorium has left a trail of concerns and uncertainties for aircraft lessors with respect to India, the world's third-largest aviation market.

Go First Lessors are ruffled by crisis, which started when the carrier decided to file for voluntary insolvency resolution proceedings before the NCLT on May 2. The lessors sought deregistartion and repossession of 45 planes of Go First, which also suspended operations from May 3.

Go First has around 55 aircraft in its fleet and 28 of them are grounded due to non-availability of Pratt & Whitney engines. The grouding of the planes resulted in fund crunch and forced the airline, which has been flying for more than 17 years, to file for insolvency proceedings.