Tag: Go First

  • NCLAT upholds order allowing Go First’s voluntary insolvency proceedings

    By PTI

    NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday upheld insolvency resolution proceedings against crisis-hit airline Go First, derailing aircraft lessors’ efforts to take back their planes from the struggling Wadia group firm.

    A two-member NCLAT bench directed aircraft lessors and the Interim Resolution Professional (IRP) of the Wadia group firm to approach the National Company Law Tribunal (NCLT) regarding the claim of possession and other respective claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency process.

    “The order dated May 10, 2023, admitting Section 10 Application is upheld,” said the NCLAT bench headed by Chairperson Justice Ashok Bhushan.

    Earlier, NCLT on May 10, 2023, admitted the plea of Go First to initiate voluntary insolvency resolution proceedings and appointed an interim resolution professional (IRP) to suspend the company’s board.

    The said NCLT order was challenged by Go First’s four aircraft lessors – SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC) – owning around 22 aeroplanes.

    Disposing of their pleas through a 40-page-long common order, the NCLAT said lessors are at “liberty to file” appropriate application before NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with “appropriate pleadings and material” regarding their claims.

    However, it also added that NCLT while considering the said application “shall not be influenced by any observations made in this order”.

    “The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with law,” it said.

    NCLAT also held lessors and IRP are at liberty to make an appropriate application under Section 60, sub-section (5) with regard to claims of possession and other respective claims relating to the aircraft in question, which need to be decided by the NCLT in accordance with the law.

    Section 10 of IBC allows a company to approach NCLT for initiation of insolvency after default.

    While section 60 (5) grants NCLT power to entertain any claim made by or against the corporate debtor including claims by or against any of its subsidiaries.

    It also grants NCLT power to deal any question of priorities or any question of law or facts, arising out of CIRP.

    Over aircraft lessors’ contention that leases with Go First were terminated prior to admission of Section 10 and moratorium as directed by NCLT order dated May 10, 2023, cannot be said to be applicable to these assets are free to claim possession, the appellate tribunal said: “the issues which are sought to be raised in this appeal have not yet been considered by the Adjudicating Authority”.

    “When the NCLT has not adverted to the aforesaid issues, where the CIRP is pending, we are of the view that ends of justice will be served by granting liberty to the Appellant(s) or to the IRP to make appropriate Application before the Adjudicating Authority under Section 60, subsection (5) of the Code,” it said directing NCLT to take appropriate decision in accordance with law.

    Aircraft lessors had also alleged that NCLT order admitting Go First insolvency plea was in “violation of principles of natural justice” as they were not served copy and sought time for filing opposition, which was not granted.

    Rejecting it, NCLAT said the statutory scheme does not contain any obligation of issuing notice to the creditors by Go First, however, if any objector appears at the time of hearing has to be heard and the objection may be noted by NCLT and thereafter the appropriate decision can be taken.

    “We, thus, conclude that the mere fact that no notice was issued to the creditors or any opportunity was given to the objectors before proceeding to hear, the Corporate Applicant, cannot be held to vitiate any procedure or violating the principles of natural justice, more so when objectors were heard by the Adjudicating Authority,” it said.

    Over the lessors’ allegation that insolvency plea was filed by Go First “fraudulently with malicious intent” as there was no financial default, the appellate tribunal said on the strength of the oral objections which were raised before NCLT and also before NCLAT, it was of the view that”no conclusion can be derived at this stage that Application filed by the Corporate Applicant was fraudulent with malicious intent.

    The suspended management of Go First was represented by Senior advocate Maninder Singh, P Nagesh and Pranjal Kishore before NCLAT, while IRP was represented by Ramji Srinivasan and Ritin Rai.

    The crisis-hit carrier has more than 7,000 employees on its roll.

    This was immediately challenged by SMBC Aviation Capital before NCLAT within hours of the NCLT order.

    Later, other lessors also moved NCLT and the appellate tribunal on May 15, reserved its order.

    So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First’s 45 planes.

    Go First stopped flying on May 3.

    NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday upheld insolvency resolution proceedings against crisis-hit airline Go First, derailing aircraft lessors’ efforts to take back their planes from the struggling Wadia group firm.

    A two-member NCLAT bench directed aircraft lessors and the Interim Resolution Professional (IRP) of the Wadia group firm to approach the National Company Law Tribunal (NCLT) regarding the claim of possession and other respective claims relating to the aircraft whose leases were terminated by the lessors after the company filed for insolvency process.

    “The order dated May 10, 2023, admitting Section 10 Application is upheld,” said the NCLAT bench headed by Chairperson Justice Ashok Bhushan.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2′); });

    Earlier, NCLT on May 10, 2023, admitted the plea of Go First to initiate voluntary insolvency resolution proceedings and appointed an interim resolution professional (IRP) to suspend the company’s board.

    The said NCLT order was challenged by Go First’s four aircraft lessors – SMBC Aviation Capital Ltd, GY Aviation, SFV Aircraft Holdings and Engine Leasing Finance BV (ELFC) – owning around 22 aeroplanes.

    Disposing of their pleas through a 40-page-long common order, the NCLAT said lessors are at “liberty to file” appropriate application before NCLT under Section 65 of the Insolvency & Bankruptcy Code (IBC) with “appropriate pleadings and material” regarding their claims.

    However, it also added that NCLT while considering the said application “shall not be influenced by any observations made in this order”.

    “The appellants, as well as IRP, are at liberty to make appropriate Application before the Adjudicating Authority (NCLT) for declaration with regard to the applicability of the moratorium on the aircraft with regard to which Leases in favour of the Corporate Applicant (Go First) were terminated prior to admission of Section 10 Application, which Application needs to be considered and decided by the Adjudicating Authority in accordance with law,” it said.

    NCLAT also held lessors and IRP are at liberty to make an appropriate application under Section 60, sub-section (5) with regard to claims of possession and other respective claims relating to the aircraft in question, which need to be decided by the NCLT in accordance with the law.

    Section 10 of IBC allows a company to approach NCLT for initiation of insolvency after default.

    While section 60 (5) grants NCLT power to entertain any claim made by or against the corporate debtor including claims by or against any of its subsidiaries.

    It also grants NCLT power to deal any question of priorities or any question of law or facts, arising out of CIRP.

    Over aircraft lessors’ contention that leases with Go First were terminated prior to admission of Section 10 and moratorium as directed by NCLT order dated May 10, 2023, cannot be said to be applicable to these assets are free to claim possession, the appellate tribunal said: “the issues which are sought to be raised in this appeal have not yet been considered by the Adjudicating Authority”.

    “When the NCLT has not adverted to the aforesaid issues, where the CIRP is pending, we are of the view that ends of justice will be served by granting liberty to the Appellant(s) or to the IRP to make appropriate Application before the Adjudicating Authority under Section 60, subsection (5) of the Code,” it said directing NCLT to take appropriate decision in accordance with law.

    Aircraft lessors had also alleged that NCLT order admitting Go First insolvency plea was in “violation of principles of natural justice” as they were not served copy and sought time for filing opposition, which was not granted.

    Rejecting it, NCLAT said the statutory scheme does not contain any obligation of issuing notice to the creditors by Go First, however, if any objector appears at the time of hearing has to be heard and the objection may be noted by NCLT and thereafter the appropriate decision can be taken.

    “We, thus, conclude that the mere fact that no notice was issued to the creditors or any opportunity was given to the objectors before proceeding to hear, the Corporate Applicant, cannot be held to vitiate any procedure or violating the principles of natural justice, more so when objectors were heard by the Adjudicating Authority,” it said.

    Over the lessors’ allegation that insolvency plea was filed by Go First “fraudulently with malicious intent” as there was no financial default, the appellate tribunal said on the strength of the oral objections which were raised before NCLT and also before NCLAT, it was of the view that”no conclusion can be derived at this stage that Application filed by the Corporate Applicant was fraudulent with malicious intent.

    The suspended management of Go First was represented by Senior advocate Maninder Singh, P Nagesh and Pranjal Kishore before NCLAT, while IRP was represented by Ramji Srinivasan and Ritin Rai.

    The crisis-hit carrier has more than 7,000 employees on its roll.

    This was immediately challenged by SMBC Aviation Capital before NCLAT within hours of the NCLT order.

    Later, other lessors also moved NCLT and the appellate tribunal on May 15, reserved its order.

    So far this month, several lessors have approached aviation regulator DGCA for deregistration and repossession of Go First’s 45 planes.

    Go First stopped flying on May 3.

  • Go First plane from Ahmedabad to Chandigarh diverted after bird hit

    By IANS

    NEW DELHI: A Go First flight operating from Ahmedabad to Chandigarh was diverted to Ahmedabad after an incident of bird hit.

    As per the aviation regulator, Directorate General of Civil Aviation (DGCA), engine number 1 of the flight G8-911 is suspected to be hit by a bird and investigation has been initiated.

    Multiple incidents of technical snags and diversion of flights have been witnessed in the last few weeks. As per government data, a total of 478 technical snags related occurrences were reported in the planes in the last one year between July 1, 2021 and June 30, 2022.

    “During operations, an aircraft may experience technical snags due to malfunctioning of components fitted on the aircraft which require rectification action by the airlines for continued safe, efficient and reliable air transport service. These technical snags are reported by the flight crew on receiving an aural/visual warning in the cockpit or an indication of an faulty system or while experiencing difficulty in operating the aircraft,” said the ministry of Civil Aviation recently in a Parliament reply.

    NEW DELHI: A Go First flight operating from Ahmedabad to Chandigarh was diverted to Ahmedabad after an incident of bird hit.

    As per the aviation regulator, Directorate General of Civil Aviation (DGCA), engine number 1 of the flight G8-911 is suspected to be hit by a bird and investigation has been initiated.

    Multiple incidents of technical snags and diversion of flights have been witnessed in the last few weeks. As per government data, a total of 478 technical snags related occurrences were reported in the planes in the last one year between July 1, 2021 and June 30, 2022.

    “During operations, an aircraft may experience technical snags due to malfunctioning of components fitted on the aircraft which require rectification action by the airlines for continued safe, efficient and reliable air transport service. These technical snags are reported by the flight crew on receiving an aural/visual warning in the cockpit or an indication of an faulty system or while experiencing difficulty in operating the aircraft,” said the ministry of Civil Aviation recently in a Parliament reply.

  • Go First operates its first evacuation flight from Budapest to Delhi; brings back 177 stranded Indians

    By PTI

    MUMBAI: Private carrier Go First on Friday said it has operated first evacuation flight to New Delhi from Budapest in Hungary to bring back 177 Indian evacuees from war-hit Ukraine.

    The city-based airline also said it will operate two flights every till March 10 as part of the Operation Ganga mission.

    The first evacuation flight of Go First from Budapest departed at 5.58 pm (local time) on Thursday and arrived in New Delhi at 9.20 am (local time) on Friday with 177 passengers onboard, the airline said in a statement.

    For the evacuation, the flight had departed from New Delhi at 10:30 am (local time) on Thursday and landed at Budapest via Kuwait at 4 am (local time), it said.

    “This is a massive humanitarian crisis. Go First will support Indians with many more evacuation flights that are required to help Indians return to their loved ones.

    “The airline has always been at the forefront and stands committed to providing our services during a crisis situation for helping our fellow citizens when they need it the most,” said Go First CEO Kaushik Khona.

    The city-based airline said it will also endeavour to provide any additional flights as the Ministry of External Affairs may require.

    Ukraine’s airspace has been closed since February 24 and India is evacuating its citizens by special flights from the eastern European country’s western neighbours like Romania, Hungary and Poland.

  • India seeks Islamabad nod for airspace for Srinagar-Sharjah flight amid Pakistan’s refusal to attend dialogue on Afghanistan

    By Express News Service

    NEW DELHI:  India has approached Pakistan through diplomatic channels requesting permission to use its airspace for the operation of Srinagar-Sharjah flight, as the neighbouring country had refused Indian carrier Go First to fly through the airspace, sources in the government said.

    The sources said the government has asked the authorities in Islamabad to reconsider the decision.

    Noting that New Delhi has taken up the matter with Pakistan through diplomatic channels, a source said: “The issue has been taken up with Pakistan on a priority basis and we have requested Islamabad to grant overflight clearance for this flight in the larger interest of the common people who have booked tickets on this route.”

    Earlier, Pakistan had refused to allow the use of its airspace for flights from Srinagar to Sharjah in the UAE.

    “Pakistan has refused use of its airspace to Go First’s Srinagar-Sharjah flight. The airline had raised its concerns and reported the same to the ministries including civil aviation, home affairs and external affairs to look into it,” a source said.

    Meanwhile, Pakistan’s decision to not attend a regional security dialogue on the Afghan crisis, being hosted by India on November 10, is unfortunate but not surprising and it reflected Islamabad’s mindset of viewing Afghanistan as its “protectorate”, official sources said on Friday.

    They said there has been an “overwhelming response” to India’s invitation to the dialogue and Russia, Iran and almost all central Asian countries have already confirmed their participation at the NSA-level meeting.

    The sources said Pakistan’s comments against India on hosting of the dialogue are an unsuccessful attempt to deflect attention from its “pernicious role” in Afghanistan.

    Pakistani NSA Moeed Yusuf on Tuesday ruled out his participation at the dialogue and said: “I will not go, a spoiler can’t be a peacemaker.”

    The sources said India sent an invitation to China as well and a formal response to it is awaited.

    India’s National Security Advisor Ajit Doval is taking the initiative in hosting the dialogue to discuss the overall security situation in Afghanistan and to firm up a collective approach in the wake of the Taliban’s capture of power in that country on August 15.

    Doval will chair the dialogue.

    Two earlier meetings in this format have been held in Iran in September 2018 and December 2019, the sources said, adding the third meeting in India could not be held earlier due to the pandemic.

    “There has been an overwhelming response to India’s invitation. Central Asian countries as well as Russia and Iran have confirmed participation. The enthusiastic response is a manifestation of the importance attached to India’s role in regional efforts to promote peace and security in Afghanistan,” said a source.

    It is for the first time that all Central Asian countries and not just Afghanistan’s immediate land neighbours are participating in this format, the sources said.

    They said invitations for the dialogue have been extended to China and Pakistan too, and formal responses are awaited.

    “However, Pakistan has indicated through the media that it will not attend. Pakistan’s decision is unfortunate, but not surprising. It reflects its mindset of viewing Afghanistan as its protectorate,” the source said.

    “Pakistan has not attended the previous meetings of this format. Its media comments against India are an unsuccessful attempt to deflect attention from its pernicious role in Afghanistan,” it said.

    The sources said the high-level participation in next week’s meeting hosted by India reflects the widespread and growing concern of regional countries about the situation in Afghanistan and their desire to consult and coordinate with each other.

    India has an important role to play in this process, they said.

    Following the Taliban’s capture of power, India has been consistently flagging concerns over possible spillover of terrorist activities from Afghanistan to other countries in the region.

    India has also been consistently maintaining that it is important that the international community continues to insist on the fulfilment of goals outlined in the UN Security Council resolution 2593 on Afghanistan.

    The UNSC resolution, adopted on August 30 under India’s presidency of the global body, talked about the need for upholding human rights in Afghanistan, demanded that Afghan territory should not be used for terrorism and that a negotiated political settlement should be found out to the crisis.

    (With PTI Inputs)

  • Srinagar-Sharjah flight denied Pakistan airspace, J&K leaders cry foul

    By Express News Service

    NEW DELHI/SRINAGAR:  Pakistan refused to allow a recently launched Srinagar-Sharjah flight to use its airspace, a move which would not only lead to increase in flying time by around 40 minutes but also costlier fares. Go First had started direct flights between Srinagar and Sharjah from October 23 onwards.

    Union Home Minister Amit Shah had inaugurated the direct flight between Srinagar and Sharjah on October 23 during his three day visit to Jammu  and Kashmir. The move marked the revival of the direct airlink between the Valley and the UAE after 11 years.

    Sources said Pakistan refused its airspace to be accessed by Go First’s Srinagar-Sharjah flight. They added that the issue was reported to the ministries including civil aviation, external affairs, and home affairs.

    From now on, the flight from Srinagar to Sharjah will have to fly via Udaipur, Ahmedabad and Oman.

    News agency PTI reported that there was no reaction from Go First despite a request for a statement.

    According to officials, Pakistan’s refusal on Tuesday forced the flight to take a longer route and fly over Gujarat to reach its destination in the UAE.

    According to officials, till October 31, the flight was going through Pakistan airspace.

    However, Pakistan on Tuesday did not allow the flight to pass through its airspace, and therefore, the service had to take a longer route, going over Gujarat, adding around 40 minutes to the flight time, they said.

    There were no specific reasons given by the Pakistan government as yet for refusing the permission to the flight, officials said.

    Officials said the flight, which operates four times a week, did not face any issue when it used Pakistan airspace between October 23 and October 31.

    There was no immediate statement or comment from Go First on the matter.

    This is the first service between Jammu and Kashmir and the UAE after 11 years.

    Air India Express had started a Srinagar-Dubai flight in February 2009 but it was discontinued after some time due to low demand.

    Reacting to Pakistan’s action, former J&K chief minister and National Conference leader Omar Abdullah tweeted “very unfortunate. Pakistan did the same thing with the Air India Express flight from Srinagar to Dubai in 2009-2010. I had hoped that @GoFirstairways being permitted to overfly Pak airspace was indicative of a thaw in relations but alas that wasn’t to be.”

    Blaming the Centre, PDP chief and former J&K chief minister Mehbooba Mufti tweeted “puzzling that GoI didn’t even bother securing permission from Pakistan to use its airspace for international flights from Srinagar. Only PR extravaganza without any groundwork.”

    Inaugurating the flight, Shah had said the commencement of Srinagar-Sharjah services would boost tourism.

    “There are many people from Srinagar and Jammu who are settled in the Gulf countries. There are many tourists who want to come from the Gulf countries to Jammu and Kashmir. The tourism of J-K is going to get a big boost with the commencement of Srinagar-Sharjah flights,” he added.

    The Srinagar-Sharjah flight duration is around 3 hours if the Pakistan airspace is used, however, with Islamabad refusing to allow the flight through its airspace, it will be nearly an hour longer, raising fuel and ticket costs.

    The Pakistan government, however, allowed Prime Minister Narendra Modi’s special flight to Italy to use its airspace on Friday to attend the G20 summit.

    His return flight from Italy was also allowed to use the Pakistan airspace on Wednesday, officials said.

    (With PTI Inputs)