NCLT admits Go First’s insolvency plea, puts it under moratorium

The Delhi Bench of the National Company Law Tribunal (NCLT) on Wednesday accepted Go First’s insolvency plea, resulting in the airline being put under a moratorium in accordance with the Insolvency and Bankruptcy Code (IBC).

“The application of the Corporate Applicant (Go First) is admitted. As a necessary consequence, the moratorium in terms of Section 14(1) (a), (b), (c) & (d) is declared,” the order said. All or certain legal remedies against debtors are suspended during a moratorium. This means that lessors of Go First will not be able to take possession of the aircraft.