Go First approaches NCLT to refund for cancelled tickets
The Wadia group-owned Go First has approached the National Company Law Tribunal (NCLT) seeking permission to refund money to passengers who had booked their tickets for travel on and after May 3. On May 3, the cash-strapped airline had suspended operations.
The airline’s resolution professional has filed a new application before the Delhi bench of NCLT, requesting "to permit the applicant/CD to make payment of refund to passengers of the CD whose airline tickets have been cancelled since May 3, 2023." The application is scheduled to be heard by an NCLT bench comprising Mahendra Khandelwal and Rahul P Bhatnagar on Monday. If permitted by the insolvency tribunal, this would be a significant relief for those air passengers, whose money is stuck with the Go First after the initiation of the Corporate Insolvency Resolution Process (CIRP) against the air carrier.
Go First had stopped flying on May 3, 2023 and had approached voluntarily for initiation of CIRP against it, as it was unable to fly due to technical difficulties faced by the non-availability of engines from Pratt & Whitney. On May 10, the NCLT admitted the plea of Go First to initiate voluntary insolvency resolution proceedings.
Last week, NCLT rejected the claims of the lessors of aircraft and engines of Go First requesting to restrain it from commercial flying and held that aircraft are available for resumption of operations since aviation regulator DGCA has not deregistered them. Earlier, several air passengers had approached NCLT directly by writing e-mail requests/phone calls for refunds of booked cancelled tickets.
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