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regular-article-logo Saturday, 15 February 2025

National Company Law Tribunal orders liquidation of Go First

In May 2023, the airline had filed for a voluntary insolvency resolution process

Our Special Correspondent Published 21.01.25, 11:48 AM
Representational image

Representational image File picture

The National Company Law Tribunal (NCLT) on Monday ordered the liquidation of budget carrier Go First, which stopped flying nearly three years ago.

In May 2023, the airline had filed for a voluntary insolvency resolution process.

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In a 15-page order, the NCLT bench said the application filed by Shailendra Ajmera, the resolution professional of Go Airlines (India), “is allowed by ordering liquidation of the corporate debtor’’.

On July 23, 2024, the airline’s committee of creditors (Coc) had with 100 per cent voting share decided to liquidate the corporate debtor.

They authorised resolution professional to move an appropriate application before the tribunal for liquidation.

The NCLT said CoC is empowered to make the decision to liquidate the corporate debtor, any time after its constitution and before confirmation of the resolution plan.

“It is well settled that the decision taken by the CoC for liquidation in commercial wisdom of the CoC should not be interfered with by the Adjudicating Authority. Further, the resolution for liquidation of the corporate debtor was approved by the CoC with 100 per cent voting. Therefore, this Adjudicating Authority sees no merit in interfering with the commercial wisdom of the CoC,” it noted.

During insolvency resolution, there were at least two bidders — Busy Bee Airways, along with SpiceJet chief Ajay Singh, and Sharjah-based aviation entity Sky One.

Travel portal EaseMyTrip’s co-founder Nishant Pitti was the majority shareholder in Busy Bee Airways. The resolution process also saw the aviation regulator DGCA deregistering 54 aircraft of Go First.

Section 33(2) of IBC provides the adjudicating authority shall pass an order for liquidation of the corporate debtor, if CoC by more than 66 per cent of votes pass the resolution for liquidation.

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