Go First tells NCLT that it is exploring settlement with Delhivery

The case now likely to come up for hearing on August 17.

The Resolution Professional (RP) of grounded airline Go First on July 24 told the National Company Law Tribunal (NCLT) it is exploring a settlement with logistics company Delhivery.

The tribunal accordingly deferred the case to the third week of August.

According to the application filed in NCLT by Delhivery, the airline received over Rs 1.58 crore from the logistics company for rendering domestic cargo consignment services but never acted on it. The money was paid according to the terms of an agreement that the companies entered into in 2020 and was last renewed in August 2022.

The plea, which Moneycontrol has reviewed, notes that Go First received Rs 57 lakh on May 2, the day it filed for insolvency, despite being aware that it may not be able to render the services even in the future as Go First does not have an operable fleet in its own admission.

The plea notes that "the sole intent of Go First in preferring the insolvency petition is to hijack the process in detriment of Delhivery's bonafide, the plea is an abuse of process of law."

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 grounding half its fleet due to faulty engines.

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