Go First Insolvency: NCLT Extends Deadline by 60 Days
Apr 08, 2024 22:20
The National Company Law Tribunal (NCLT) has extended the deadline for Go First's insolvency resolution process by another 60 days, marking the third extension. This brings the new deadline to June 3. The decision follows a request from the resolution professional (RP).
Photograph: ANI Photo
New Delhi, Apr 8 (PTI) Insolvency tribunal NCLT on Monday once again extended the deadline to complete the resolution process of grounded airline Go First by another 60 days.
This is the third extension given to Go First by the National Company Law Tribunal (NCLT) from April 4 to June 3.
A two-member bench of the Delhi-based NCLT admitted the request by the resolution professional (RP) of Go First, seeking an extension of the timeline to complete the corporate insolvency resolution process (CIRP).
On February 13, the NCLT extended the deadline to complete CIRP to April 4. This was after the tribunal on November 23 last year granted an extension of 90 days, which ended on February 4.
The Insolvency & Bankruptcy Code (IBC) mandates completion of CIRP within 330 days, which includes the time taken during litigations.
As per Section 12(1) of the Code, CIRP should be completed within 180 days.
However, the maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days, failing which a corporate debtor is sent for liquidation.
On May 10, 2023, the NCLT admitted the plea of Go First -- which stopped operating flights on May 3 -- to initiate voluntary insolvency resolution proceedings.
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