NCLT notice to Go First CoC on refunds

If you had bought tickets on Go First before the carrier filed for insolvency and did not get any refund, then you may get now. The grounded airline has sought permission of NCLT to refund the amount to its customers.

Hearing the matter, the National Company Law Tribunal issued notices to the Committee of Creditors of Go First and insolvency regulator IBBI on the airline’s plea to refund Rs 597.54 crore to around 15.5 lakh passengers.

The resolution professional approached the NCLT to seek permission for refunding money to passengers.
The NCLT also asked the RP to take specific permission from the lenders over the refund. It also wanted to know if any party has filed an objection to this plan. The counsel for RP said the CoC is aware of this, it has already envisaged the business plan and approved it. However, he sought time from the tribunal to check whether this particular refund plan has been approved by the CoC or not.

The tribunal said as plans keep on changing, it would be better if a specific resolution over payment for refund is taken. It also wanted to know whether anyone has filed an objection to this refund plan

Go First stopped flying on May 3, 2023, and voluntarily filed for insolvency.
If the airline is allowed to refund the money, it would be a big relief for passengers who had booked tickets in advance before Go First decided on insolvency.

Last week, NCLT rejected the pleas of the lessors of aircraft and engines of Go First requesting to restrain the airline from commercial flying and held that aircraft are available for resumption of operations since aviation regulator DGCA has not deregistered them.

NCLT ruled that that physical possession of the aircraft/engines would be with Go First and lessors cannot claim possession during the resolution process of the carrier.