The National Company Law Tribunal (NCLT), Delhi has received a request from Go First Airlines for the voluntary opening of insolvency proceedings. Senior Attorney P Nagesh brought up the claim under Section 7 of the Insolvency and Bankruptcy Code in front of the NCLT Chair. The firm filed a motion with the tribunal, stating that the grounding of its flights was happening as a result of recurrent and ongoing problems with engines supplied by the American corporation Pratt & Whitney (P&W). The business filed for voluntary insolence because it was no longer able to make payments on its debts. It stated that 28 flights more than 50% of its fleet had to be grounded as a result of P&W’s defective engines. The business claimed that P&W breached the contract by failing to repair the engines or provide adequate spare parts. In order to have an arbitral award enforced, the airline had filed a lawsuit against P&W in federal court in Delaware, United States. In order to avoid the risk of the airline closing down, P&W was required by the March 30 award in favour of Go First Airlines to provide the airline with engines. In reality, the business announced on its Twitter account that it will temporarily halt all flying operations from May 3 to May 5, 2023.
On May 4, the NCLT will hear a petition about the insolvency of Go First Airlines’ debts.