NCLAT Upholds Go First Liquidation: Busy Bee Plea Rejected

New Delhi, Apr 4 (PTI) The insolvency appellate tribunal NCLAT on Friday dismissed a batch of petitions filed against the liquidation of grounded carrier Go First.

A three-member NCLAT bench led by Chairperson Justice Ashok Bhushan upheld the earlier order passed by the Delhi bench of the National Company Law Tribunal (NCLT), which had, on January 20, ordered for the airline's liquidation.

Rejecting the petition by Busy Bee Airways, the National Company Law Appellate Tribunal (NCLAT) said it did not find any infirmity in the order of the Adjudicating Authority.

The order was pronounced in the open court and a detailed order is still awaited.

Busy Bee Airways, Bhartiya Kamgar Sena Mumbai, and Captain Arjun Dhawan had challenged the NCLT order of liquidation of Go First.

Busy Bee Airways has submitted that it is ready to acquire Go First as a going concern as it still has valuable assets and a licence from the Directorate General of Civil Aviation (DGCA) to operate.

Travel portal EaseMyTrip's Co-Founder Nishant Pitti is the majority shareholder in Busy Bee Airways.

Bhartiya Kamgar Sena Mumbai, a trade union body, had submitted that around 5,000 workers would be left with nothing if the company is liquidated.

The trade union body requested to keep the airline as a going concern until arbitration with American engine maker Pratt & Whitney concludes at the Singapore International Arbitration Centre.

On January 20, the National Company Law Tribunal (NCLT) ordered the liquidation of Go First, the budget carrier that stopped flying nearly two years ago amid financial woes.

In May 2023, the airline filed for a voluntary insolvency resolution process.

NCLT had said the CoC (committee of creditors) in the legislative scheme is empowered to make the decision to liquidate the corporate debtor at any time after its constitution and before confirmation of the resolution plan.

Go Air, which was rebranded as Go First, flew for more than 17 years before suspending operations on May 3, 2023.

During the insolvency resolution process, there were at least two bidders in the fray -- Busy Bee Airways, along with SpiceJet chief Ajay Singh, and Sharjah-based aviation entity Sky One.