GO FIRST AIRWAYS SET FOR LIQUIDATION AFTER TRIBUNAL RULINGS
In a significant development for the beleaguered Go First Airways, the National Company Law Appellate Tribunal (NCLAT) on Friday dismissed multiple appeals challenging the National Company Law Tribunal’s (NCLT) decision to liquidate the airline.
The appellate tribunal, comprising Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka, held:
“We do not find any infirmity in the order of the Adjudicating Authority. These appeals deserve to be dismissed.”
VOLUNTARY INSOLVENCY PLEA AND MORATORIUM DISPUTE
Go First filed a voluntary plea under Section 10 of the Insolvency and Bankruptcy Code (IBC) on May 2, 2023, seeking admission to the Corporate Insolvency Resolution Process (CIRP). The NCLT admitted the plea on May 10, 2023, and appointed a Resolution Professional (RP) to oversee the company’s affairs.
However, the case soon became mired in legal challenges. Several aircraft lessors moved the NCLAT, claiming that their assets had been unfairly retained under the IBC moratorium, even though lease agreements had been terminated before insolvency proceedings began.
On May 22, 2023, the NCLAT upheld the NCLT’s moratorium ruling and directed lessors to seek clarity directly from the NCLT.
DELHI HIGH COURT RULING AND DGCA AIRCRAFT DE-REGISTRATION
The lessors later approached the Delhi High Court, urging the Directorate General of Civil Aviation (DGCA) to deregister their aircraft. Initially, the DGCA resisted, citing the IBC’s moratorium clause.
This changed after the Ministry of Corporate Affairs clarified on October 4, 2023, stating that Section 14(1) of the IBC does not apply to aircraft, engines, airframes, or helicopters.
Following this clarification, the DGCA informed the Delhi High Court that the exemption would apply to pending cases but deferred any decision on Go First due to its sub judice status.
On April 26, 2024, the Delhi High Court directed the DGCA to deregister Go First’s fleet, a process completed by early May 2024. Maintenance and export responsibilities of the deregistered aircraft were handed over to the lessors under Rule 32A of the Aircraft Rules.
LIQUIDATION PROCEEDINGS AND APPOINTMENT OF LIQUIDATOR
With no aircraft available and no viable revival plan, the Committee of Creditors (CoC) moved to liquidate Go First in September 2024.
Although the NCLT initially raised concerns over allowing the existing RP, Shailendra Ajmera, to serve as the liquidator, and expressed doubts about permitting third-party funding to pursue arbitration at the Singapore International Arbitration Centre (SIAC), it ultimately approved the CoC’s proposal to appoint Dinkar Venkatasubramanian as the liquidator.
On January 20, 2025, the NCLT officially ordered the liquidation of Go First Airways.
APPEALS AND FINAL DISMISSAL
The dismissed appeals were filed by:
Busy Bee Airways – a prior bidder for Go First
Bhartiya Kamgar Sena, Mumbai
Captain Arjun Dhawan, among others
Busy Bee argued that the CoC acted prematurely, deciding on liquidation before they could submit a renewed bid.
Despite these arguments, the NCLAT ruled in favor of the liquidation, affirming the NCLT’s stance.
LEGAL REPRESENTATION
Senior Advocate Krishnendu Dutta represented Busy Bee Airways with advocates Apoorv Agarwal, Prachi Darji, Saloni Singh, Alina Mathew, Tushar Gadia, Ritika Prasad, Kamakshraj Singh, and Abhiraj Das.
Go First’s Liquidator was represented by Senior Advocate Ritin Rai with advocates Diwakar Maheshwari, Vishnu Shriram, Pratiksha Mishra, and Shreyas Endupugant.
CONCLUSION
With the NCLAT affirming the NCLT’s liquidation order, Go First Airways now faces the final stages of its corporate journey. The airline’s once-promising trajectory has been grounded permanently, underscoring the volatile nature of India’s aviation sector amid financial and operational challenges.
