IBBI informs NCLT has no views on refund of tickets by Go First RP; CoC says part of resolution

economictimes.indiatimes.com:

National Company Law Tribunal that it had no stand on the Go First’s resolution professional’s plea to refund ticket amount for flights that have been grounded since May 3. “We have no stand on this; the tribunal may decide the matter on merits,” the counsel for IBBI informed NCLT. The counsel for Committee of Creditors also did not raise any objections on the petition to refund tickets, claiming that it was part of the resolution plan approved by the creditors.

The tribunal directed both the IBBI and the CoC to file a reply within three days, stating their respective position and listed the matter on August 25.Go First’s resolution professional approached the NCLT on July 31 to refund Rs 597.5 crore for tickets booked on the airline. The RP had informed the court that 97% of the bookings are through aggregators who put security deposits in escrow accounts to make bookings. A show cause notice was issued directing that Go First should stop selling tickets directly or indirectly on May 8.

The senior counsel appearing for the RP had submitted that the Rs 550 crore lying in the escrow account was not the property of the corporate debtor. The tribunal had issued notice to CoC and IBBI in the matter and asked them to file a reply by the next hearing date. The Wadia-group airline had filed for voluntary insolvency under Section 10 of the Insolvency and Bankruptcy Code, 2016, on May 2, which was admitted on May 10.