The National Company Law Appellate Tribunal (NCLAT) on Friday dismissed a series of appeals challenging the National Company Law Tribunal's (NCLT) decision to initiate the liquidation of Go First Airways.

A bench comprising Chairperson Justice Ashok Bhushan and Technical Members Barun Mitra and Arun Baroka stated:

“We do not find any infirmity in the order of the Adjudicating Authority. These appeals deserve to be dismissed.”

A detailed copy of the order is awaited.

The appeals were filed by Busy Bee Airways, Bhartiya Kamgar Sena (Mumbai), Captain Arjun Dhawan, among others. Busy Bee, a former bidder for the airline, argued that the Committee of Creditors (CoC) had opted for liquidation prematurely—before the company could submit a revised bid.

Go First had voluntarily filed for insolvency on May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC). The NCLT admitted the petition on May 10, initiating the Corporate Insolvency Resolution Process (CIRP) and appointing a Resolution Professional (RP) to oversee operations.

The decision was soon challenged by the airline’s lessors, who contended that their leased aircraft had been unfairly retained under the IBC’s moratorium, despite termination of leases prior to the CIRP.

On May 22, 2023, the NCLAT upheld the NCLT’s order, advising the lessors to approach the NCLT for clarification on the moratorium. In parallel, the lessors petitioned the Delhi High Court, seeking directions to the Directorate General of Civil Aviation (DGCA) to de-register their aircraft.

Initially, the DGCA resisted the de-registration request, citing the ongoing moratorium. However, a significant shift occurred on October 4, 2023, when the Ministry of Corporate Affairs clarified that Section 14(1) of the IBC would not apply to transactions involving aircraft, engines, airframes, or helicopters.

Acting on this clarification, the DGCA filed an affidavit before the Delhi High Court, acknowledging that the exemption should apply to pending cases. However, it deferred action in Go First’s case, citing its sub judice status.

Finally, on April 26, 2024, the Delhi High Court ordered the DGCA to de-register Go First’s fleet, which was executed by early May 2024. The responsibility for maintenance and export of the de-registered aircraft was transferred to the lessors under Rule 32A of the Aircraft Rules.

With no aircraft available and no viable resolution plans in sight, the CoC resolved in September 2024 to liquidate the airline and moved an application before the NCLT.

During the proceedings, the NCLT raised concerns about allowing the existing RP, Shailendra Ajmera, to continue as the company’s liquidator. The tribunal also questioned whether it could approve third-party funding for arbitration proceedings at the Singapore International Arbitration Centre (SIAC).

Eventually, the CoC proposed the appointment of Dinkar Venkatasubramanian as the liquidator—a nomination the NCLT approved. On January 20, 2025, the tribunal formally ordered the liquidation of Go First.

Busy Bee Airways was represented by Senior Advocate Krishnendu Dutta, along with Advocates Apoorv Agarwal, Prachi Darji, Saloni Singh, Alina Mathew, Tushar Gadia, Ritika Prasad, Kamakshraj Singh, and Abhiraj Das.

Go First’s liquidator was represented by Senior Advocate Ritin Rai, with Advocates Pratiksha Mishra and Shreyas Endupugant.