The path to Go First’s return to operations faces further hurdles due to a recent administrative change at the National Company Law Tribunal (NCLT) overseeing the case. This change involves the original bench responsible for addressing the legal challenges brought by aircraft lessors, who have now chosen to recuse themselves from the case. Consequently, a fresh bench must be appointed by the NCLT president, potentially causing additional delays in Go First’s resolution process.
The original bench, consisting of Justice Mahendra Khandelwal and Technical Member Rahul Prasad Bhatnagar, is considered “part-heard.” However, they are unable to rule on new filings. This means that all parties involved, including the airline’s resolution professional (RP) and the lessors, will need to re-present their cases to the newly-appointed bench once it is constituted.
This administrative hurdle presents challenges for both Go First’s future and the lessors, raising the prospect of extended delays in resolving the airline’s complex situation.
One of the legal counsels representing the lessors expressed dissatisfaction with this delay. It is important to note that neither the lessors nor the airline desire a prolonged legal process. They are keen to recover their valuable aircraft and engines while the airline seeks a revival.
Unfortunately, the exact reason for the bench change has not been provided, as the notification did not offer specific explanations. While the National Company Law Appellate Tribunal (NCLAT) has encouraged the NCLT to prioritize the case, it has not set a specific deadline for its resolution.
Since Go First entered insolvency proceedings and a moratorium was imposed in May, the case has already been heard by two different benches. This highlights the administrative complexities and challenges faced by applicants in insolvency cases when benches are frequently reconstituted.
Furthermore, Go First’s future remains uncertain in the Delhi High Court (HC), where a single bench is currently overseeing all parties involved in the deregistration case of the aircraft initiated by the lessors. Although the Delhi HC has reserved its judgment in the maintenance case filed by three lessors, it is expected to issue a ruling in the coming weeks.
The administrative change at the NCLT overseeing Go First’s case introduces additional uncertainties and potential delays. While all parties involved are eager to expedite the resolution process and address their respective concerns, the frequent reconstitution of benches and the evolving legal landscape continue to pose challenges. Go First’s return to operations and the resolution of its complex financial situation remain subject to these ongoing legal developments.
