Budget carrier Go First on Monday urged the National Company Law Tribunal (NCLT) to pass an order on its plea for voluntary insolvency resolution at the earliest.
The crisis-hit airline, which has cancelled all its flights till May 12, has sought an interim moratorium to prevent lessors from taking possession of its aircraft.
Senior advocate P. Nagesh along with Pranjal Kishore mentioned the matter in the morning before the principal bench of the tribunal headed by President Ramalingam Sudhakar.
The counsels requested the tribunal to take an early decision on its plea, saying the lessors have started deregistering the airline's aircraft.
The bench agreed to look into Go First's request.
While the National Company Law Tribunal heard Go First's bankruptcy plea last week, it has yet to pass an order.
Lessors have sought the deregistration of more than 20 planes and approached the aviation regulator Directorate General of Civil Aviation (DGCA) after the airline knocked on the doors of the NCLT.
Around 28 planes which account for more than half of its fleet are grounded with the airline blaming ``failing engines’’ supplied by Pratt & Whitney (P&W).
In its insolvency plea with the NCLT,Go First said it has liabilities of around Rs 11,463 crore with the dues of financial creditors at Rs 6,500 crore while that of the lessors are Rs 2,600 crore.
In its petition, the airline sought various interim directions from the NCLT including restraining lessors from taking back aircraft and regulator DGCA from taking any adverse action against it.
It also said that DGCA, Airports Authority of India (AAI), and private airport operators should not cancel any departure and parking slots allotted to the company.
The airline said fuel suppliers should also not terminate their present contractual arrangements.
During the hearing on Monday, the counsels representing the lessors such as SMBC Aviation Capital said that there was no provision of an interim moratorium in the Insolvency and Bankruptcy Code (IBC), which was countered by the airline.
Go First has over 7,000 employees and 10,000 indirect employees, who will be impacted if the airline's operations are grounded.
Pratt & Whitney, part of Raytheon Technologies and the exclusive supplier of engines to Go First, has previously told an arbitrator that the airline's claim of defective engines causing its demise was "astounding" and without evidence.
Go First failed because of "its own poor management and events like Covid", Pratt said, according to legal documents.
Ticket sale bar
New Delhi: Aviation regulator DGCA on Monday directed crisis-hit Go First to immediately stop bookings and sale of tickets directly or indirectly till further orders, according to a source.
Besides, the watchdog has issued a show cause notice to the budget carrier under the relevant provisions of the Aircraft Rules, 1937, for its failure to continue the operation of the service in a safe, efficient and reliable manner, the source said.
Earlier, the airline had suspended the sale of tickets till May 15 and has cancelled flights till May 12.
The source said the airline has been directed to stop the booking and sale of tickets directly or indirectly, with immediate effect and until further orders.
The airline has been asked to submit its reply within 15 days of the receipt of the show cause notice, and further, a decision on the continuation of its Air Operators Certificate (AOC) will be taken on the basis of the reply submitted by it, the source added. It has filed a plea for voluntary insolvency before the NCLT.