NCLAT upholds NCLT order allowing Go First’s insolvency
New Delhi, May 22
The National Company Law Appellate Tribunal (NCLAT) on Monday upheld an order allowing crisis-hit Go First’s voluntary insolvency resolution proceedings.
“The order dated May 10 admitting Section 10 application is upheld,” stated a coram of chairperson Justice Ashok Bhushan and member (Technical) Barun Mitra of NCLAT.
The lessors — SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV — moved the appellate authority challenging the May 10 order by the National Company Law Tribunal that put a moratorium on the airline’s financial obligations and barred the lessors from the recovery of the aircraft from Go First for non-payment of dues.
The four companies had leased out 21 aircraft to the Go First airline. The default towards the lessors has been estimated to be Rs 2,660 crore.
The lessors informed NCLAT that they had approached the Directorate General of Civil Aviation for deregistration and repossession of Go First’s aircraft. They argued that the aircraft lease terminated before the moratorium was granted.
The appellate body rejected the plea filed by the lessors to take possession of aircraft and asked the appellants to approach the adjudicating authority for relief.
The lessors had leased 22 aircraft
The direction came on a batch of four petitions filed by aircraft lessors opposing Go First’s insolvency proceedings. The lessors are SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC).
