In the case of Go First Airline, the National Company Law Appellate Tribunal has reserved its verdict on three lessors' appeal challenging the order passed by the National Company Law Tribunal (NCLT) of the interim moratorium and insolvency resolution proceedings.
Justice Ashok Bhushan-led bench of the National Company Law Appellate Tribunal (NCLAT) Court on Monday evening reserved the judgement for May 22.
"We are reserving the judgement for May 22," Justice Bhushan-led bench of the NCLAT said.
The appeal was filed by three Go first lessors -- SMBC Aviation Capital Ltd, SFV Aircraft Holdings, GY Aviation Lease Court Ltd -- before the NCLAT Court against Go First's voluntary insolvency resolution proceedings.
The lessors were opposing the NCLT judgement which had gone in favour of Go First and given a go-head for Interim Resolution Professional (IPR) and interim moratorium.
NCLAT on Friday deferred the matter pertaining to Go First lessors' petition seeking a stay on a bankruptcy court's order allowing voluntary insolvency of the low-cost airline to Monday.
On May 10, the NCLT admitted Go First's plea for voluntary insolvency and admitted for the initiation of Corporate Insolvency Resolution Process (CIRP) proceedings. NCLT has granted Go First protection under a moratorium from recovery by lessors and lenders.
NCLT, in its order, said, "We admit the plea of Go Airlines for insolvency proceedings. It said that we appoint Abhilash Lal as IRP (insolvency resolution professional)."
"The suspended board of directors will cooperate with the IRP. Suspended directors are also ordered to deposit Rs 5 crore to make the immediate expenses," the order stated.
The budget airline had also cancelled all the flights' operations till May 19 due to operational reasons, "Go First flights until 19th May 2023 are cancelled. We apologise for the inconvenience caused and request customers."
US-based jet manufacturers Pratt and Whitney (P-W) has defended itself against the budget airline's claim that P-W is responsible for the financial condition and bankruptcy.
"Go First's allegations that Pratt and Whitney is responsible for its financial condition are without merit. Pratt and Whitney will vigorously defend itself against Go's claims, and is pursuing its own legal recourse," Pratt and Whitney spokesperson told ANI.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)