Relief for Go Airlines as NCLAT Upholds NCLT Order
The national company law appellate tribunal (NCLAT) on Monday upheld the NCLT's (national company law tribunal's) order granting moratorium to the Wadia group's Go Airlines (India) Ltd.
NCLAT decided on the petitions filed by some lessors who had leased aircraft to Go Airlines. They had challenged the moratorium granted to Go Airlines by NCLT.
The lessors' contention was that the lease agreement with Go Airlines had ended before NCLT admitted Go Airlines insolvency petition and, hence, the airlines has no right over the leased planes.
However, the aircraft lessors can file an appeal against the moratorium before NCLT.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
1 year ago
A bad decision on balance. It may keep Go Air flying a while longer but the damage done to the aircraft leasing market is huge. Earlier too the DGCA dragged its feet on deregistering leased aircraft of kingfisher and Jet on the pretext that the airlines owed money to the airports and fuel companies. This was totally overlooking that a leased aircraft is the property of the lessor and not the airline.

GoAir has deliberately allowed lease rentals to build up past 2500 crore but maintained banks dues as current so it doesn’t become an NPA. This recourse to IBC and retention of leased aircraft is cynical and illegal. It will also result in all Indian airlines paying a high premium on lease rentals.

Hope the NCLT rethinks n
Free Helpline
Legal Credit