NCLT Reserves Order On Go First's Plea Seeking Voluntary Insolvency Proceedings

The National Company Law Tribunal has reserved its verdict on the plea filed by the carrier seeking insolvency resolution proceedings

The airline, formerly known as GoAir, had sought the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

The day-long hearing, during which the Wadia group-controlled airline requested the beginning of bankruptcy resolution proceedings and the imposition of an interim moratorium on its financial commitments, was ended by a two-member bench presided over by President Justice Ramalingam Sudhakar, as per PTI.

Go First request for insolvency proceedings has been opposed by aircraft lessors who claim that they should be heard before such proceedings are initiated.

Neeraj Kishan Kaul, the Senior Advocate representing Go First, argued that the objective of the Insolvency and Bankruptcy Code is to maintain the company's status as a going concern, not to ground it. Despite this, cash strapped Go First has cancelled all flights until May 9.