Senior counsel P Nagesh, while appearing for the budget airline, made an oral request on Monday to the principal bench of the National Company Law Tribunal (NCLT).
On May 4, the tribunal reserved its order in an application by the budget airline, which has voluntarily sought the initiation of insolvency proceedings against itself.
The carrier’s counsel argued that aircraft lessors are now moving to take possession of planes in absence of the order.
“We received notices from lessors for termination, they have moved DGCA (Directorate General of Civil Aviation) as well,” argued the counsel for Go Air. “We are not being allowed access for maintenance work as well.”
Meanwhile, as per the tribunal’s website, one of the operational creditors, SS Associate Services, has approached the tribunal through its lawyer Richa Sandilya to admit the budget airline under the Corporate Insolvency Resolution Process (CIRP). Last week, a division bench of Justice Ramalingam Sudhakar, president of the National Company Law Tribunal (NCLT) in New Delhi, and technical member LN Gupta heard the low-cost airline’s prayer seeking imposition of an interim moratorium before reserving the order.
Before the tribunal decided to reserve its order, senior advocate Neeraj Kishan Kaul, appearing for the Wadia Group-owned carrier, argued that due to the increased grounding of aircraft, the company started facing substantial losses and now it is seeking an order of imposition of an interim moratorium to prevent lessors from taking possession of the 26 aircraft.The company also argued that if it loses possession of the aircraft and the legal right to operate them, then the continuation of business will be at stake.
