The National Company Law Appellate Tribunal (NCLAT) upheld insolvency proceedings against Go First on Monday, delaying aircraft lessors’ efforts to reclaim their jets from the failing Wadia group enterprise. A two-member NCLAT bench directed aircraft lessors and the Interim Resolution Professional (IRP) of the Wadia group firm to file a claim of possession and other respective claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency. The order dated May 10, 2023 admitting the Section 10 Application is upheld, said the NCLAT panel led by Justice Ashok Bhushan.
Previously, on May 10, 2023, the NCLT granted Go First’s request to commence voluntary insolvency proceedings and appointed an interim resolution professional (IRP) to suspend the company’s board. The NCLT order was contested by Go First’s four aircraft lessors, SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC), which possess about 22 aircraft. The NCLAT ruled lessors had “liberty to file” appropriate applications before NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with “appropriate pleadings and material” establishing their claims in a 40-page-long joint order. However, it also stated that the NCLT “shall not be influenced by any observations made in this order” when examining the aforementioned application.
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