Insolvency Tribunal Dismisses Petitions, Confirms Go First Liquidation

The National Company Law Appellate Tribunal (NCLAT) upheld an earlier order for the liquidation of airline Go First, dismissing petitions by Busy Bee Airways and trade union Bhartiya Kamgar Sena Mumbai. The airline suspended operations in May 2023 after filing for insolvency. Busy Bee had sought to acquire the airline, citing valuable assets.

The National Company Law Appellate Tribunal (NCLAT) has dismissed a series of petitions challenging the liquidation order of embattled airline Go First. A three-member bench, led by Chairperson Justice Ashok Bhushan, confirmed the earlier decision by the National Company Law Tribunal (NCLT) ordering the liquidation of the airline, which halted operations in May last year.

Among the appellants were Busy Bee Airways and the Bhartiya Kamgar Sena trade union, both of which argued for keeping the carrier operational. Busy Bee, spearheaded by Nishant Pitti of EaseMyTrip, stated its interest in acquiring Go First due to its assets and operational license, while the union emphasized the fate of 5,000 workers affected by the closure.

The NCLT's decision was initially made on January 20, empowering the committee of creditors to seek liquidation. Efforts to conclude arbitration with engine supplier Pratt & Whitney were cited by the union to delay the process. Go First, formerly known as Go Air, had served the aviation market for over 17 years before facing financial distress that led to its insolvency filing in May 2023.

(With inputs from agencies.)