The National Company Law Tribunal (NCLT) has granted defunct airline GoFirst an additional 60 days to complete the insolvency process. This is the fourth extension granted to GoFirst to complete the Corporate Insolvency Resolution Process (CIRP). Earlier, the bankruptcy tribunal had granted an extension of 60 days on April 8, which ended on June 3, 2024. Go First has now been given time till 3 August 2024. Let us tell you that the company is struggling to find a buyer.
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The NCLT bench issued a stern reprimand
Granting the extension, the Delhi-based NCLT bench said it was the final extension. A two-member bench reprimanded the resolution professional for seeking extension. Counsel appearing for the Resolution Professional (RP) informed the tribunal that he was seeking the extension due to the extraordinary situation arising after the Delhi High Court judgment asking the DGCA to cancel the registration of all 54 of its aircraft. According to RP, those who have shown interest in buying the airline have revised their offers and lenders are yet to consider them. Hence an extension of 60 days is required.
what is the rule
As per Insolvency and Bankruptcy Code (IBC), completion of CIRP within 330 days is mandatory. This also includes the time taken during litigation. As per Section 12(1) of the Code, the CIRP should be completed within 180 days. Let us tell you that GoFirst stopped operating flights on May 3 last year.
A busy B Airways withdrew the bid
Recently, Nishant Pitti, Chief Executive Officer (CEO) of travel portal EasyMyTrip said that he is withdrawing his name from the bidding process for the airline. Busy Bee Airways, which owns a majority stake in Pitti, made a bid for GoFirst in February along with SpiceJet chief Ajay Singh.