The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by Go Airlines against an order passed by the NCLT allowing withdrawal of insolvency proceedings against Sovika Aviation Services. The Mumbai bench of the National Company Law Tribunal (NCLT) had on September 23, 2021 allowed the Section 12A application filed by the Resolution Professional for withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Sovika Aviation Services. Go Airline after coming to know about the process filed its claim on September 6, 2021. A response to it was sent by the Resolution Professional on September 10, 2021.
Under Section 12A of the Insolvency and Bankruptcy Code (IBC), the tribunal can permit withdrawal of an on-going insolvency process against a company subject to certain conditions. Such application is filed by the company with the approval of 90 per cent voting share of the Committee of Creditors (CoC).A two-member NCLAT bench observed that the CoC had already resolved to withdraw CIRP against Sovika Aviation Services.
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“In view of the sequence of events and facts brought on record that after Committee of Creditors approval dated March 19, 2021 for withdrawal of the CIRP proceedings against the Corporate Debtor after settlement between the parties claim of the Appellant was submitted on September 6, 2021, we do not find any error in the order of the NCLT dated September 23, 2021 permitting withdrawal of the CIRP,” said NCLAT.
It further said regarding the claim of Go Airlines, which has not been entertained in the insolvency resolution proceedings, it is always open for the airlines to take recourse to appropriate legal proceedings before an appropriate forum.
“The fact that claim of the Go Airlines has not been entertained in the insolvency resolution process, there shall be no bar for the Appellant to take the appropriate legal remedy as permissible in law,” “We make it clear that we have not expressed any opinion on the merits of the claim of the Appellant and it is for the appropriate forum to consider and take a decision in accordance with law” the tribunal said.
The NCLAT took note of the respondent’s submission that Go Airlines has already filed a suit before the commercial court, and notice for mediation has been received. It is always open for the parties to take recourse to appropriate remedy as permissible in law.
