NCLT defers Go First case hearing to September 1

Go First filed for bankruptcy protection in May, blaming engine maker Pratt & Whitney for the grounding of half of its fleet and economic woes.

The National Company Law Tribunal (NCLT) on August 4 deferred the hearing of applications filed by the lessors of grounded airline Go First to September 1.

At the hearing on August 4, senior advocate Ramji Srinivasan, appearing for Go First's Resolution Professional (RP), told the court that three new applications have been filed by the lessors in addition to the six existing applications and sought time to file responses to them. Srinivasan also told the court that he would need two weeks to file responses as Go First is being dragged to fight litigations in various forums by the lessors.

The court accordingly deferred the hearing of the case to September 1, granting the RP 10 days time to file his response. The court also asked the RP to file a status report on the maintenance of the aircraft in two weeks.

In addition to these pleas, the tribunal is also hearing Go First's application seeking its permission to refund the fares of passengers whose flights had been cancelled since its grounding.

On July 26, NCLT turned down a plea by seven of the lessors to restrain the airline from using the leased aircraft, a decision seen as a boost for the low-fare carrier.

The tribunal held that aircraft and engines were essential to keep the company running as a “going concern”.

Go First filed for bankruptcy protection in May, blaming engine maker Pratt & Whitney for the grounding of half of its fleet and economic woes, a claim denied by the company.

The airline owes Rs 8,000 crore to a consortium of banks, which includes State Bank of India, Punjab National Bank, IDBI, Canara Bank and ICICI Bank.

On May 10, NCLT accepted its plea to initiate the insolvency resolution process. The tribunal appointed an insolvency resolution professional, suspended the board and imposed a moratorium on the airline's financial obligations.