Go First Bankruptcy: NCLT To Hear Two Insolvency Pleas Against Go First Today

Go First bankruptcy, lying in the hands of law will start eyeing a resolution from today. As per reports, the National Company Law Tribunal (NCLT) will be hearing two insolvency petitions against Go First today. 

According to media reports, these two insolvency petitions are in addition to the voluntary insolvency filed by Go First last week. One of them has reportedly been filed by a transport services provider and the other has been filed by a pilot. While the former claims Rs 3 crore, the latter claims over Rs 1 crore. 

Since Go First has been going through a massive financial crunch, the Wadia Group-owned airline hopes to resolve some problems through insolvency proceedings. It also seeks a protection of an interim moratorium. 

In the petition filed in NCLT on May 2, Go First sought directions to restrain its lessors from taking any recovery action as well as restrain the Directorate General of Civil Aviation (DGCA) and suppliers of essential goods and services from going for any adverse actions. 

In addition to this, Go First has also put in a request that the DGCA and Airports Authority of India (AAI), and private airport operators must not cancel any departure and parking slots given to Go First. As of now, the NCLT has reserved its order in response to the pleas heard last Thursday. 

It must also be noted that Go First has cancelled all flights till May 12, 2023 and also stopped any new bookings till May 15, 2023. As per DGCA’s directives, Go First is liable to refund the whole amount to all passengers, whose flights have been cancelled due to the current chaos.