 "NCLT has power to decide IBC disputes, not HC: Go First RP to Delhi HC")
Go First Resolution Professional on Thursday said the National Company Law Tribunal (NCLT) has the power to decide disputes related to the Insolvency and Bankruptcy Code (IBC), 2016, and not the Delhi High Court.
"If IBC is to succeed in this country, there has to be one unified forum to extract the economic value, for the maximisation of value and for successful resolution of insolvency," Senior Advocate Neeraj Kishan Kaul, appearing for the RP, told Justice Tara Vitasta Ganju.
"You can't have it scattered and spread over various tribunals to avoid conflict," he added.
Kaul said in IBC, NCLT has jurisdiction to decide and impose a moratorium and whether it applies to a situation or not. He said that if a party is aggrieved by the tribunal's order, they could file an appeal at the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court (SC), but the Delhi High Court, being of writ jurisdiction, cannot decide a dispute relating to the IBC.
Kaul said liquidation is the last refuge. "If I don't fly, where will I go? I haven't even touched upon it. People are leaving. Even handling flights are not permitted. How do I maintain aircraft without handling flights?" he asked.
Talking about staff and fund crunch, he said, "Workmen are not there. I don't have the manpower documents. I am short on manpower. I am short on finances. There was a resumption plan approved by the Directorate General of Civil Aviation (DGCA). The Committee of Creditors (CoC) gave an interim fund. That fund is exhausted. Where do I go?"
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"Tomorrow they will move an application saying you are violating orders on document maintenance. And that is why I am in a rush today because these matters will keep on arising. How do I run this when the object of IBC is to revive it?" he asked.
Kaul also questioned which resolution applicant would be interested in the Corporate Debtor if it's not revived?
The HC will now hear the case on December 5, 6, and 7. Meanwhile, the NCLT is likely to start hearing the applications by lessors on December 1.
The National Company Law Tribunal (NCLT) last Thursday extended the insolvency process of grounded airline Go First by 90 days.
The extension will take effect from November 6 this year and end on February 4 next year.
Dismissing the airline’s lessors’ objections to the extension, the NCLT said the resolution plan should be completed within the stipulated period.
The tribunal has asked the resolution professional (RP) of the airline to submit a 90-day action plan.
Go First filed for voluntary insolvency on May 2 under Section 10 of IBC, and on May 10, the NCLT admitted Go First’s insolvency plea.
Go First’s aircraft lessors had then filed an appeal against the NCLT order in the NCLAT. The NCLAT upheld the NCLT order and the matter was sent back to the NCLT.
The lessors had moved an application before the Delhi HC against the DGCA to release their aircraft, saying they had deregistered their aircraft before the moratorium kicked in.