NCLT Orders Go First to Release Aircraft Engines Amidst Insolvency Proceedings

The National Company Law Tribunal (NCLT) has directed Go First to release four aircraft engines to Engine Lease Finance (ELF) amidst its ongoing insolvency proceedings. The counsel for the resolution professional confirmed the process has commenced. The tribunal will hear further pleas from other lessors on August 9.

The National Company Law Tribunal (NCLT) has issued a directive for Go First to release four aircraft engines back to Engine Lease Finance (ELF).The resolution professional's counsel confirmed that the return process for one engine has already started and there are no objections to releasing the remaining engines.

Headquartered in Shannon, Ireland, ELF is a prominent engine financing and leasing company. The tribunal has scheduled another hearing for August 9, where other engine lessors will present their cases for the return of their assets.

In June, the NCLT granted Go First a 60-day extension to complete its Corporate Insolvency Resolution Process (CIRP). This marked the grounded air carrier’s fourth extension. The Delhi-based NCLT bench has termed this as the final extension.

The Insolvency & Bankruptcy Code (IBC) mandates that the CIRP be completed within 330 days, incorporating time spent on litigation. Section 12(1) of the code stipulates a 180-day period for CIRP completion, though extensions up to 330 days are permissible.

Go First ceased its flight operations on May 3 and initiated voluntary insolvency proceedings a week later, on May 10, 2023.