NCLAT upholds Go First bankruptcy proceedings in a setback to lessors

The National Company Law Appellate Tribunal on Monday upheld the insolvency proceedings against cash-strapped airline Go First in a setback to efforts of its lessors to repossess their aircraft.

At least three leasing companies, including GY Aviation Lease and SMBC Aviation Capital, had challenged a tribunal ruling granting Go Airlines (India), widely known as Go First, bankruptcy protection earlier this month, Reuters reported.

Upholding the NCLT’s May 10 order, the appeals tribunal disposed of the lessors’ petition and asks them to file an appeal before the NCLT. The IRP (Interim Resolution Professional) is allowed to proceed with the insolvency resolution process.