A bench comprising of Justice Ramalingam Sudhakar and a technical member L N Gupta reportedly said there is provision for absolute moratorium under the IBC and not a provision for an interim moratorium
The National Company Law Tribunal (NCLT) has told Go First there is no scope for an interim moratorium under the Insolvency and Bankruptcy Code (IBC) while hearing Go First's plea seeking an interim moratorium on Thursday, The Economic Times reported.
A bench comprising of Justice Ramalingam Sudhakar and a technical member L N Gupta reportedly said there is provision for absolute moratorium under the IBC and not a provision for an interim moratorium.
Go First's lawyers told NCLT that the purpose of voluntary insolvency was to revive the carrier and added that the Wadia group-backed entity is seeking comprehensive debt restructuring.
Go First became second airline in the country after Jet Airways to file for insolvency on Tuesday. The Wadia group-backed said it was forced to seek voluntary insolvency resolution proceedings due to "serial failure" of Pratt & Whitney engines resulting in grounding of 50 per cent of the fleet and is no longer in a position to continue to meet its financial obligations.
The latest move by the Mumbai-based carrier, which has been flying for more than 17 years, came after arbitration proceedings in Singapore and a suit filed in a US court seeking enforcement of the arbitration award last month.
In a detailed statement to PTI, Go First said it has been forced to apply to the National Company Law Tribunal (NCLT) because of the recurring and persistent issues with the GTF (Geared Turbofan) engines supplied by P&W.