NCLT issued notice to the promoters of airline company Go First, gave 3 weeks time for this work

The National Company Law Tribunal (NCLT) has ordered the suspended board of directors of Go First to file a reply within three weeks on the liquidation of the debt-ridden company. The Delhi bench of NCLT on Tuesday issued a notice to the suspended management of the defunct airline company and ordered to list the matter for hearing in the first week of October.

Liquidation of Go First was requested for not finding a suitable buyer.

This order of NCLT has come on an application filed by the resolution professional of Go First (formerly Go Air) under Section 33 (1) of the Insolvency and Bankruptcy Code (IBC). The application sought liquidation of Go First on the ground of failure of the lenders to find a suitable buyer within the stipulated time.

Decision of liquidation of Go First taken by majority

During the hearing on the application, Go First’s lawyer informed the NCLT that the committee of creditors has taken a majority decision for the liquidation of the company. NCLT had given an extension of 60 days in June to complete the insolvency process of this closed airline.

NCLT had accepted the bankruptcy petition of Go First in May last year.

This was the fourth extension given to Go First to complete the debt resolution process. NCLT had accepted the insolvency petition of Go First on May 10, 2023. Airline company Go First had stopped operating all its flights last year on May 3, 2023, citing financial crisis. In May 2023, Go First’s fleet consisted of a total of 59 aircraft. These included 54 Airbus A320neo and 5 Airbus A320 aircraft.