Besides, Interim Resolution Professional Abhilash Lal has been directed not to retrench any employees. The tribunal’s ruling comes against the backdrop of lessors moving to deregister at least 45 planes of the airline. Soon after, SMBC Aviation Capital Ltd moved the appellate tribunal NCLAT against the NCLT order
Aircraft lessor SMBC Aviation Capital Ltd has moved the NCLAT against the NCLT order in favour of Go First. Pic/PTI
In a major relief to cash-strapped Go First, the National Company Law Tribunal (NCLT) on Wednesday admitted its plea for voluntary insolvency resolution proceedings and imposed a moratorium on the airline’s financial obligations that bars lessors from taking back aircraft.
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A two-member NCLT bench said there is existence of unpaid debt and default committed by Go First above the limits under IBC. With liabilities worth R11,463 crore, the airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations under Section 10 of IBC, which allows a company to approach NCLT for initiation of insolvency after default.
Also Read: NCLT admits Go First's plea to initiate insolvency resolution process
Besides, Interim Resolution Professional Abhilash Lal has been directed not to retrench any employees. The tribunal’s ruling comes against the backdrop of lessors moving to deregister at least 45 planes of the airline. Soon after, SMBC Aviation Capital Ltd moved the appellate tribunal NCLAT against the NCLT order.
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