Go First: NCLT Orders Liquidation - Details

The National Company Law Tribunal (NCLT) on Monday, January 20, 2025, ordered the liquidation of  Go First Airways. 

A bench of NCLT comprising Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan had allowed the liquidation application filed by the Committee of Creditors (CoC) of Go First to be admitted, Bar and Bench Reported.

“Liquidation is ordered," the NCLT said. A detailed copy of the order is yet to be made public.

Go First Liquidation: The Plea

Go First filed a voluntary plea seeking admission to the Corporate Insolvency Resolution Process (CIRP), On May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC).

The NCLT admitted the application on May 10, and appointed a Resolution Professional (RP) to manage the airline's affairs.

Go First Liquidation: Lessors React

In response to the NCLAT, Go First's lessors filed an appeal. They argued that their assets had been unfairly retained under the moratorium, despite the termination of leases before the proceedings began.

On May 22, 2023, the NCLAT upheld the NCLT's decision and directed the lessors to seek clarification regarding the suspension of activities from the NCLT.

The lessors eventually approached the Delhi High Court, urging the Directorate General of Civil Aviation (DGCA) to deregister their aircraft, that is, remove its registration from records. Initially, the DGCA resisted, citing the moratorium.

Go First Liquidation: Min Of Corporate Affairs Chips In

On October 4, 2023, the Ministry of Corporate Affairs clarified that Section 14(1) of the IBC would not apply to transactions involving aircraft, engines, airframes, or helicopters.

The DGCA then submitted an affidavit before the Delhi High Court affirming that the exemption should apply to pending cases but deferred action on Go First’s case, citing its sub judice status.

Go First Liquidation : Deregistration Ordered

On April 26, 2024, the DGCA was ordered by the Delhi High Court to deregister the airline’s fleet, which was completed by early May 2024. 

The maintenance and export of the deregistered aircraft would be handled by the lessors under Rule 32A of the Aircraft Rules.

Faced with no aircraft and no viable revival options, the CoC decided in September 2024 to liquidate the company and applied for the same.

In October 2024, the bench had raised apprehensions about permitting the company’s Resolution Professional (RP) Shailendra Ajmera to be its liquidator.

Subsequently, the CoC named Dinkar Venkatasubramanian as its liquidator. The CoC was represented by advocate Vishnu Sriram.

The Resolution Professional was represented by advocate Diwakar Maheshwari.