Go First resolution professional approaches NCLT seeking permission for refund of cancelled tickets

economictimes.indiatimes.com:

National Company Law Tribunal (NCLT) seeking permission to refund money to passengers who had booked their tickets for travel on and after May 3, the day when the cash-strapped airline suspended operations. The Resolution professional of Go First 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.» Applicant here refers to resolution professional and CD refers to corporate debtor or Go First.

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 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.

Earlier, several air passengers had approached NCLT directly by writing e-mail requests/phone calls for refunds of booked cancelled tickets. On this, the NCLT had issued an advisory earlier this month on July 3, asking them to approach the RP to claim a refund as per the procedure of the Insolvency & Bankruptcy Code (IBC).

«It is requested that all the requests/claims for refund or any other related issues may be sent to the RP mentioned above as per the provisions of the IBC,» it said. Last week,