NCLT Issues Notice Go First Airlines Over Allegations of Fraudulent Insolvency Process
The National Company Law Tribunal (NCLT), Delhi bench has issued a notice to the Interim Resolution Professional (IRP)
By: : Tanishka Roy
Update: 2023-06-08 16:45 GMT
NCLT Issues Notice Go First Airlines Over Allegations of Fraudulent Insolvency Process The National Company Law Tribunal (NCLT), Delhi bench has issued a notice to the Interim Resolution Professional (IRP) of Go First airlines in response to a plea filed by supply chain company Delhivery. Delhivery has accused Go First of conducting a fraudulent insolvency process and claimed that the...
NCLT Issues Notice Go First Airlines Over Allegations of Fraudulent Insolvency Process
The National Company Law Tribunal (NCLT), Delhi bench has issued a notice to the Interim Resolution Professional (IRP) of Go First airlines in response to a plea filed by supply chain company Delhivery.
Delhivery has accused Go First of conducting a fraudulent insolvency process and claimed that the airline accepted payments of Rs. 57 lakhs from Delhivery on 2nd May, the same day it filed for insolvency.
Delhivery has filed a plea with the NCLT, arguing that Go First’s initiation of the Corporate Insolvency Resolution Process (CIRP) was a sham.
The supply chain company asserted that Go First knowingly accepted payments despite being aware of its intention to file for voluntary insolvency before the NCLT.
The two-member bench of the NCLT, in response to Delhivery’s plea, has directed the IRP to submit a reply within two weeks. The matter is scheduled for the next hearing on July 24.
Go First, is currently undergoing the CIRP, through its plea filed for voluntary insolvency resolution proceedings which was admitted by the NCLT on 10 May.
Abhilash Lal of Alvarez & Marsal has been appointed as the IRP of the airline.
Nevertheless, Delhivery has requested the Tribunal to allow it as an intervener in the company petition and its lawyers, claiming that the initiation of the CIRP was fraudulent and malicious.
The lawyers representing Delhivery have raised concerns about the authenticity of the insolvency process.
In a separate development, three lessors – BOC Aviation (Ireland), Jackson Square Aviation Ireland, and Engine Lease Finance BV – filed petitions with the NCLT seeking possession of their aircraft and engines leased to Go First.
The lessors argued that they terminated their lease agreements prior to the airline’s insolvency plea being admitted.
The NCLT has directed the IRP of Go First to file a reply within one week in response to the petitions filed by the lessors.