World
India
In a significant development, the National Company Law Tribunal (NCLT) has ordered the liquidation of Go First Airways, following a request from the airline’s Committee of Creditors (CoC). This decision marks the end of a long, tumultuous period for the airline that began with its voluntary plea for Corporate Insolvency Resolution Process (CIRP) in May 2023.
Background and Liquidation Decision
The NCLT bench, comprising Judicial Member Mahendra Khandelwal and Technical Member Dr. Sanjeev Ranjan, confirmed the decision to liquidate Go First Airways. The airline had filed for insolvency in May 2023, citing financial struggles, and the NCLT appointed a Resolution Professional (RP) to oversee the airline’s operations. Despite initial efforts to turn around the company, the airline faced an insurmountable financial crisis.
While Go First’s creditors and lessors continued to challenge the airline’s status, the Ministry of Corporate Affairs provided some clarity. In a key move on October 4, 2023, the Ministry clarified that Section 14(1) of the Insolvency and Bankruptcy Code (IBC) would not apply to transactions involving aircraft and related assets. Following this, the Directorate General of Civil Aviation (DGCA) deregistered Go First’s fleet by early 2024, and the maintenance and export of aircraft were transferred back to the lessors.
No Revival Options, CoC Opts for Liquidation
By September 2024, with the airline’s fleet largely grounded and no feasible revival options on the table, the Committee of Creditors (CoC) took the final decision to liquidate the airline. This marked the end of Go First Airways’ turbulent journey, with no further attempts to revive operations.
Appointment of Liquidator and Legal Representation
Initially, the NCLT had expressed concerns about appointing Shailendra Ajmera as the liquidator, but later approved Dinkar Venkatasubramanian for the role. The CoC was represented by advocate Vishnu Sriram, while the Resolution Professional was represented by advocate Diwakar Maheshwari.
The liquidation of Go First Airways follows a series of failed efforts to revive the airline, and the NCLT’s ruling brings closure to the long-standing legal battles. As the airline’s assets are liquidated, the fate of its creditors, employees, and stakeholders now hangs in the balance.
