Wednesday, July 17, 2024
reading time: 2 minutes
Engine rental company wins major legal battle against Go First as NCLT Four engines were ordered back, marking the end of a long-running dispute.
The National Company Law Tribunal (NCLT) has ordered Go First to return four engines to Engine Lease Finance BV. The specialist bankruptcy court issued the directive on July 11. The airline’s insolvency professional has confirmed its plans to comply with the court’s ruling, with the process of returning the first engine already underway.
The decision concludes a long-running dispute between the Irish leasing company and Go First, which has been ongoing since the airline ceased operations. In April 2024, the Delhi High Court ordered the leased aircraft to be deregistered and returned, paving the way for Engine Lease Finance to seek the return of their engines. Engine Lease Finance was among 16 entities that filed an application with the National Court of Appeals in May seeking orders to recover their assets from Go First. The other engine lessors are scheduled to file their cases with the National Court of Appeals on August 9, 2024, seeking the return of their engines.
GoFirst’s 60-day deadline to complete the corporate insolvency resolution process (CIRP) has expired. The final deadline for the bankruptcy proceedings was set for August 3. When the National Company Law Tribunal (NCLT) extended the timeline in June, it was declared the final extension. Under India’s bankruptcy rules, the corporate insolvency resolution process must be completed within 330 days, after which the company will go into liquidation. Earlier in the year, the resolution professional and the creditors’ committee were optimistic about the sale of GoFirst. However, the Delhi High Court’s deregistration order in April has undermined the viability of relaunching the airline, deterring potential buyers who had initially expressed interest.
