Corporate dispute tribunal NCLT has asked the suspended board of grounded airline Go First to file a reply within three weeks over the liquidation of the debt-ridded firm. A two-member bench of the Delhi-based National Company Law Tribunal (NCLT) issued a notice to the suspended management of the company on Tuesday and ordered the listing of the matter for hearing in the first week of October.
The NCLT order came after the resolution professional of Go First moved an application under section 33 (1) of the Insolvency & Bankruptcy Code, seeking liquidation of Go First as the lenders failed to find a reasonable buyer within the stipulated time frame.
During the proceedings, counsel appearing for Go First informed the NCLT that the Committee of Creditors decided to liquidate the company with a majority vote.
In June NCLT had granted an extension of 60 days to the grounded air carrier for completing the Insolvency process of grounded air carrier. This was the fourth extension for Go First to complete the Corporate Insolvency Resolution Process (CIRP).
While granting the extension, The Delhi-based NCLT bench said: “This is the final extension”.
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.
The NCLT, on May 10, 2023, admitted the plea of Go First — which stopped operating flights on May 3 — to initiate voluntary insolvency resolution proceedings.
