NCLT to hear aircraft lessor's plea against cash-strapped Go First tomorrow

Go First has liabilities worth around Rs 11,000 crore.

The National Company Law Tribunal (NCLT) will hear on May 29 a plea by aircraft lessor BOC Aviation (Ireland) Limited seeking to secure the aircraft that it has leased to Go First.

The application has 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 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.

The NCLAT had directed the NCLT to decide the applications of the lessors and IRP without being influenced by any observations made by it.

The aircraft lessors to Go First, such as SMBC aviation capital, SFV Aircraft Holdings and GY Aviation Lease, challenged the order of the NCLT admitting the cash-strapped airline's plea for insolvency. The lessors argued at the NCLAT that Go First is using the insolvency proceedings to hold on to aircraft that it does not own.

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, earlier GoAir, filed for bankruptcy on May 2, blaming US engine maker Pratt & Whitney for the grounding of half of its fleet.

The ultra-low-cost airline has liabilities worth around Rs 11,000 crore.