Go First Faces NCLT Notice As Delhivery Alleges Non-Payment Of Dues

The National Company Law Tribunal (NCLT) has recently issued a notice to the resolution professional of Go First in response to a plea filed by logistics firm Delhivery. The plea alleges non-payment of dues by Go First and seeks to initiate insolvency proceedings against the airline, as reported by PTI

In its plea, Delhivery claimed that Go First's insolvency process was a fraud and that the airline received Rs 57 lakh from Delhivery on May 2, the day it filed for insolvency.

"Go First received ₹57 lakh on May 2 from Delhivery as advance for future services, knowing fully well they were filing for insolvency," said the counsel for Delhivery.

A two-member panel of the National Company Law Tribunal (NCLT) asked the IRP to file a response within two weeks and scheduled the subject for hearing on July 24.

Go First is now involved in the Corporate Insolvency Resolution Process (CIRP). On May 10, the NCLT granted Go First's request to commence voluntary insolvency proceedings and appointed Abhilash Lal of Alvarez & Marsal as the airline's IRP.

Earlier this week, the NCLT required Go First's IRP to provide a response within one week to petitions filed by three lessors seeking possession of their aircraft and engines- Jackson Square Aviation Ireland, Engine Lease Finance BV and BOC Aviation (Ireland).

The lessors claimed that they had terminated their lease prior to the airline's admission of insolvency.
aircraft lessor Jackson Square Aviation Ireland Ltd and engine lessor Engine Lease Finance (ELF) BV submitted applications in the Go First matter, claiming that they had terminated contracts with Go First on May 3, prior to the acceptance of Go First's Section 10 application on May 10. Both petitioned the court, arguing that the moratorium on the airline's assets, imposed after the voluntary insolvency petition was admitted, should not apply to the leased assets. Jackson Square leased eight planes to Go First. Go First has 54 leased aeroplanes.

The court's directive on June 5 made it mandatory for the Insolvency Resolution Professional (IRP) to receive a copy of the application filed by BOC Aviation (Ireland) Ltd, a prominent aircraft leasing services provider. These issues have been slated for a hearing on June 15th.