NCLT reserves judgement after Go First’s request for an interim moratorium

The airline requested an interim moratorium during the hearing and said there was a chance the firm may be resurrected.

Crisis-hit Go First said that the reason the company had filed for bankruptcy was due to its engine supplier’s faulty supply. The airline requested an interim moratorium during the hearing and said there was a chance the firm may be resurrected. The airline acknowledged its financial difficulties as well. The airline acknowledged that it is experiencing financial difficulties at the moment.

The National Company Law Tribunal has postponed its decision regarding the carrier’s appeal for a temporary suspension on financial obligations days after it filed for insolvency. Earlier this year, the airline owned by the Wadia company requested the start of insolvency resolution procedures. The airline’s proposal has been met with opposition from the aircraft lessors, who claim that bankruptcy procedures cannot be started without their input.


While considering a petition from the airlines, the court ruled that the Insolvency and Bankruptcy Code (IBC) does not include a provision for an interim moratorium.

The cash-strapped carrier accused US engine manufacturer Pratt & Whitney of forcing half of its fleet off the road. Go First claimed that there was a strong case for resurrection and that the tribunal should impose a moratorium.

The carrier stated in a document dated April 28 that there had been, “many, persistent, and continuing technical issues with the defective GTF Engines supplied by Pratt.”

According to CEO Kaushik Khona, the airline has requested to begin voluntary insolvency resolution procedures before the National Company Law Tribunal (NCLT).

In addition, the company claimed that the US manufacturer had also disregarded an arbitration ruling requiring it to provide the airline with spare engines and parts. There is now “a significant risk that Go First will go out of business and be forced to declare bankruptcy,” according to Go First.

Go First has cancelled all flights until May 9 and put a hold on bookings until May 15. The DGCA has issued an order requesting that the airline handle passenger reimbursements.

Go First responded to the regulator on Tuesday after getting a show cause notice. They hinted that they had submitted an application to the NCLT under “Section 10 of the IBC” related to insolvency. The corporation had stated that it will decide on its next steps based on how their application to the NCLT turned out.

But as the holiday season gets underway, a lot of passengers are furious about the sudden cancellations and sharply rising ticket costs of other airlines.