Aviation News

NCLT gives a week to Go First’s RP to reply to app filed by lessor, ET Infra


The National Company Law Tribunal, on Monday, granted a week to Go First’s resolution professional to file a reply to the applications filed by aircraft lessor DAE (SY22) 13 Ireland Designated Activity Company and logistics service provider Delhivery.

The aircraft lessor has argued that the voluntary insolvency petition filed by the Wadia-group-owned airline was not in “good faith”.

The counsel representing the RP stated that the copy of the application was only received on September 4 and sought time to file a reply.

The tribunal adjourned the matter to October 16.

In Delhivery’s case, the counsel for the courier company opposed the request of the RP’s counsel for an extension of three days to file the reply. The counsel claimed that the resolution professional had been delaying the filing of the reply.

The tribunal orally noted that this was the last chance being given to the RP to file a reply and gave it a week. The tribunal gave another week for filing a rejoinder and listed the matter on October 9.

At the last hearing on August 17, both parties informed the bench that the negotiations between both parties had failed. Delhivery had also alleged a 10-week delay in filing of reply by the resolution professional.

Delhivery had approached the tribunal in June, claiming that the voluntary insolvency petition filed by the beleaguered airline under Section 10 of the Insolvency and Bankruptcy Code, 2016, was “malicious and fraudulent” under Section 65.

The grounded airline owes Rs 1.59 crore, which it had taken as advance for transporting cargo. Of this, Rs 57 lakh was taken on the day Go First approached the tribunal for voluntary insolvency.

Delhivery has been claiming that the airline’s actions were “mala fide”, as it was aware of the financial position since April 28.

Go First, as per its filing, has defaulted on payments of Rs 2,660 crore toward aircraft lessors and Rs 1,202 crore towards vendors. The airline owes another Rs 6,521 crore to its financial creditors.

  • Published On Sep 11, 2023 at 05:47 PM IST

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