Go First on Monday asked the National Company Law Tribunal to pass an order on its bankruptcy petition soon. Behind this request, the company has cited that the company’s grounded aircraft are being asked to return. Wadia Group’s airlines, GoFirst, on Thursday filed an insolvency application before the NCLT citing cash crunch. According to the airline, it has applied for insolvency resolution proceedings for the betterment of GoFirst. NCLT has reserved its order on the petition of Go Airlines after hearing.

There is a debt of 11 thousand crore rupees

As per the Insolvency and Bankruptcy Code, the effect of such interim moratorium is to stay all pending legal proceedings in respect of any ‘loan’. GoFirst had sought several interim directions from the NCLT bench, including restraining the lessors from taking back the aircraft and restraining the DGCA from taking any action against the airline. The airline has a debt of around Rs 11,000 crore. GoFirst stated that its bank account has been frozen and requested the NCLT court to defreeze its bank account. GoFirst Airlines said that this application has not been made to avoid payment of dues.

What is said in the petition?

According to the airline’s petition, the aircraft lessors have been asked to desist from taking any recovery action. At the same time, instructions have been sought to stop the DGCA and the suppliers providing essential goods and services from taking any action. It has been said in the petition that a request has been made on behalf of DGCA, Airport Authority of India and private airport operators not to cancel any departure and parking slot allotted to the airline. However, the aircraft lessors opposed the airline’s request saying that without hearing them, insolvency proceedings cannot be initiated.