Delay looms over Go First's revival as another bench will now hear matter

The revival of Go First encountered another setback on Wednesday when the National Company Law Tribunal (NCLT) two-member bench announced that a different bench would now preside over the case.

Justice Mahendra Khandelwal and technical member Rahul Prasad Bhatnagar have instructed the airline's resolution professional (RP) and the lessors to approach the NCLT president to designate a new bench for this issue.

The bench highlighted that since the requests made by all involved parties were based on similar grounds, a fresh bench could determine the outcomes.

It's pertinent to mention that since the initiation of Go First's insolvency proceedings and the subsequent moratorium from May 10, two different benches have already deliberated on the case. The upcoming bench will be the third to review the matter.

 

Additionally, the lessors have lodged an appeal against the Directorate General of Civil Aviation (DGCA) in the high court, seeking deregistration of their aircraft and permission to inspect them. They are advocating for their aircraft to be excluded from the moratorium period.

To clarify, a moratorium is a designated timeframe during which most or specific legal actions against a debtor are halted. This period commences once a company is formally recognised as insolvent/bankrupt.