New Delhi, Sep 4 (PTI) Corporate dispute tribunal NCLT has extended the insolvency resolution deadline for grounded airline Go First for the fourth time and directed the suspended board of the debt-ridden firm to file a reply within three weeks.
A two-member bench of the Delhi-based National Company Law Tribunal (NCLT) issued notice to the suspended management of the company on Tuesday and listed the matter for hearing in the first week of October.
The resolution professional of Go First had moved the application under section 33 (1) of the Insolvency & Bankruptcy Code for the liquidation of Go First after 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.
This was the fourth extension for Go First to complete the Corporate Insolvency Resolution Process (CIRP), as the airline has been struggling to find a buyer.
In June, NCLT had granted an extension of 60 days to the grounded air carrier for completing the insolvency process.
While granting the latest extension on Tuesday, the NCLT’s Delhi bench said: “This is the final extension.” The Insolvency & Bankruptcy Code (IBC) mandates completion of CIRP within 330 days, which includes the litigation period.
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. PTI KRH HVA
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