 "Go First")
The National Company Law Appellate Tribunal (NCLAT) will today hear the plea filed by aircraft lessor SMBC Aviation Capital Ltd challenging the National Company Law Tribunal's (NCLT) order allowing the insolvency of Go First.
SMBC Aviation Capital, formerly RBS Aviation Capital, is one of the world's largest aircraft leasing companies.
Soon after the NCLT allowed Go First's plea, SMBC Aviation Capital's counsel moved the NCLAT and mentioned the plea before a bench headed by chairman justice Ashok Bhushan. After hearing the aircraft lessor, Bhushan directed the tribunal to list the matter for hearing on Thursday.
As per the cause list, SMBC Aviation Capital's plea is listed for hearing on Thursday before the two-member bench comprising justices Ashok Bhushan and Barun Mitra.
In the last week, various lessors have approached the aviation regulator Directorate General of Civil Aviation (DGCA), for the deregistration and repossession of a total of 45 planes of Go First.
During the hearing at the NCLT last week, several aircraft lessors, including SMBC Aviation Capital Ltd, Narmada Aviation Leasing, Yamuna Aviation Leasing, GAL MSN, and GY Aviation Lease, had opposed Go First's plea.
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The lessors had also mentioned that they wished to file an application under Section 65 of the IBC, which deals with fraudulent or malicious initiation of proceedings.
IBC refers to the Insolvency and Bankruptcy Code.
On Wednesday, the NCLT said there is "no bar in entertaining/ considering/ adjudicating" a Section 65 application after the initiation of the insolvency resolution process.
"Keeping in mind the urgency of the instant case, to protect and maximise the value of the assets in line with the objectives of the IBC, employment involved, and the larger public interest, the judicial propriety demands, it will not be apt to wait for the filing of the Section 65 application," the NCLT said.
Go First stopped flying on May 3, and aviation regulator DGCA on Monday directed the airline to stop the sale of tickets till further orders.
Earlier in the day, the Delhi-based principal bench of the NCLT appointed an interim resolution professional to look after the affairs of Go First and also suspended its board.
(With agency inputs)
