In a significant development pertaining to the insolvency proceedings of Go First, the National Company Law Appellate Tribunal (NCLAT) has upheld the voluntary resolution proceedings authorized by the National Company Law Tribunal (NCLT). This decision, rendered on Monday, reinforces the ongoing efforts to resolve the financial crisis faced by Go First. A two-member bench of the NCLAT, led by Chairperson Justice Ashok Bhushan, directed the concerned aircraft lessors to approach the NCLT for any possible redress.
The NCLAT’s decision to endorse the insolvency order dated May 10, 2023, reaffirms the viability of the resolution process. This ruling comes as a response to four petitions filed by aircraft lessors who contested the insolvency proceedings initiated by Go First. The parties involved in these petitions include SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings, and Engine Leasing Finance BV (ELFC).
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Acknowledging the concerns raised by the opposing lessors, the NCLAT bench clarified that any recourse sought by them should be pursued through the established channels provided by the NCLT. By redirecting the lessors to approach the NCLT for their grievances, the NCLAT aims to ensure a systematic and fair resolution process, preserving the interests of all stakeholders involved.
This ruling from the NCLAT constitutes an essential step forward in the ongoing insolvency proceedings of Go First. The coordination between the NCLAT and the NCLT strengthens the regulatory framework and establishes a clear pathway for lessors to address their concerns. These developments reflect the commitment of the resolution professionals to navigate the complex terrain of insolvency proceedings and provide an equitable resolution for all parties involved in the Go First case.
