The Go First logo seen on tailfins of aircraft.
Credit: Reuters File Photo
New Delhi: The National Company Law Tribunal (NCLT) on Thursday directed grounded carrier Go First to release four aircraft engines of Engine Lease Finance (ELF) BV.
The counsel appearing for the resolution professional (RP) submitted that he has already started the process of returning one engine to the lessor. The RP submitted that he has no objection over the process of releasing the four aircraft.
Headquartered in Shannon, Ireland, ELF is the world's leading independent engine financing and leasing company.
The NCLT has put the matter for further hearing on August 9, when other engine lessors may argue their case for return.
Earlier in June, NCLT had granted an extension of 60 days to the grounded air carrier Go First, for completing the Insolvency process of grounded air carrier Go First for 60 days.
This is the fourth extension for Go First to complete the Corporate Insolvency Resolution Process (CIRP), which is struggling to find a buyer.
The Delhi-based NCLT bench said this is the final extension.
The Insolvency & Bankruptcy Code (IBC) mandates completion of CIRP within 330 days, which includes the time taken during litigations.
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.
On May 10, 2023, the NCLT admitted the plea of Go First -- which stopped operating flights on May 3 -- to initiate voluntary insolvency resolution proceedings.