Go First case: NCLT seeks response from newly appointed RP on lessors' pleas

Go First filed for bankruptcy on May 2, blaming US engine maker Pratt & Whitney for grounding half of its fleet due to faulty engines.

The National Company Law Tribunal (NCLT) on June 15 asked Go First's newly appointed Resolution Professional (RP) to file responses to pleas by lessors.

The tribunal also directed the RP to maintain the assets of the lessors. The applications are likely to be heard by the tribunal on July 6. Earlier in the hearing, the NCLT approved the appointment of Shailendra Ajmera as the new RP of the crisis-hit airline.

Lessors such as SMBC Afro Engine Leasing, Bluesky 19 Leasing Company Limited and Bluesky 31 Leasing Company Limited were the latest to move applications at the tribunal, seeking possession of their aircraft and engines as they contended that they had terminated their leases with Go First before the moratorium kicked in on May 10.

Earlier, lessors such as Jackson Square Aviation, Engine Lease Finance B.V, and BOC Aviation had moved similar applications and on June 5, NCLT had directed the IRP Abilash Lal to file responses. However, since Lal has now been replaced, the tribunal granted the newly appointed RP some time to file his response.

These applications by lessors have been filed pursuant to the National Company Law Appellate Tribunal's (NCLAT) May 22 order, which upheld Go First's insolvency and directed the lessors to file an appropriate application at the NCLT to ascertain the status of leases terminated prior to the airline being admitted to insolvency.

The appellate tribunal also granted liberty to the then Interim Resolution Professional (IRP) to move an application at the NCLT with respect to the claims of both parties relating to the aircraft in question.

On May 10, the principal bench of NCLT at Delhi admitted Go First's voluntary plea to initiate an insolvency resolution process.

The tribunal appointed an IRP while suspending the board and putting a moratorium on the debt-ridden airline's financial obligations.

Founded by billionaire Nusli Wadia, Go First, formerly known as GoAir, filed for bankruptcy on May 2, blaming US engine maker Pratt & Whitney for grounding half of its fleet due to faulty engines.