New Delhi [India], May 9 : The principal bench of NCLT will pronounce order on the Go First Airline's bankruptcy plea.
The Budget airline had filed a petition with the National Company Law Tribunal (NCLT), seeking protection under the bankruptcy law. It had also sought an interim moratorium to prevent the seizure of its 26 aircraft by aircraft lessors.
Go First on last Thursday pleaded to the National Company Law Tribunal (NCLT) for an interim moratorium after facing an acute cash crunch. The airline has also sought direction to appoint an insolvency resolution process (IRP) for the betterment of the Go First. The NCLT, after the hearing, reserved its order on Go Airlines' plea.
According to the Insolvency and Bankruptcy Code (IBC), the effect of such an interim moratorium is that all pending legal proceedings with respect to any 'debt' are deemed to have been stayed.
Go First today said the airline would respond to the notice of civil aviation regulator the DGCA in due course. The budget airline also said it had already stopped taking bookings, before the Directorate General of Civil Aviation issued the notice.
The DGCA issued a show cause notice to Go First under the relevant provisions of the Aircraft Rules, 1937, for their failure to continue the operation of the service in a safe, efficient and reliable manner on Monday.
A Go First spokesperson in a statement said, "To reduce the inconvenience to the passengers, we had already stopped taking bookings, before the DGCA issued the notice. Go First is taking all possible measures to reduce passenger inconvenience. As regards the DGCA notice, the same will be responded to, in due course."
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