TBM Staff - Mumbai
The National Company Law Tribunal (NCLT) has ordered the liquidation of Go First Airways following a petition filed by its Committee of Creditors (CoC). The decision, made by a Bench led by Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan, marks the end of the budget airline’s operations. Go First had filed a voluntary plea under Section 10 of the Insolvency and Bankruptcy Code (IBC) in May 2023, requesting admission to the Corporate Insolvency Resolution Process (CIRP). Despite appointing a Resolution Professional (RP) to oversee operations, no revival options were identified.
The airline’s lessors challenged the insolvency proceedings, arguing their assets had been unfairly retained under the moratorium despite the termination of leases. The National Company Law Appellate Tribunal (NCLAT) upheld the NCLT’s ruling in May 2023, advising lessors to seek further clarifications. Subsequently, the lessors approached the Delhi High Court, urging the Directorate General of Civil Aviation (DGCA) to deregister their aircraft. Initially declined due to the moratorium, the Ministry of Corporate Affairs later clarified that Section 14(1) of the IBC would not apply to aircraft-related transactions, paving the way for deregistration.
By early May 2024, the DGCA completed the deregistration of Go First’s fleet, assigning the lessors responsibility for maintenance and export under Rule 32A of the Aircraft Rules. With no operational fleet and no viable turnaround strategies, the CoC resolved to liquidate the airline in September 2024. However, concerns over the appointment of Resolution Professional Shailendra Ajmera as the liquidator led to the selection of Dinkar Gupta to oversee the liquidation process.
The NCLT’s ruling underscores the challenges faced by Go First in navigating its insolvency crisis. Once a prominent player in India’s budget airline sector, the company faced mounting financial and operational setbacks, culminating in its liquidation. The move reflects the CoC’s conclusion that no feasible revival plan could sustain the airline’s operations, bringing an end to its journey in India’s aviation industry.
