The National Company Law Tribunal (NCLT) on Thursday upheld an earlier ruling that prohibited lessors from repossessing their leased aircrafts from the now-defunct Go First Airlines.
The ruling comes after the airline filed for insolvency and then opted for Corporate Insolvency Resolution Process (CIRP). As per the ruling, lessors are prohibited from repossessing the leased aircrafts.
This ruling has been met with delight by the airline’s employees and their families, who have been facing a tough time due to non-payment of salaries and other benefits.
The NCLT bench said that, while the entire fleet of a company that has gone into modern insolvency belongs to its creditors and cannot be with held, interim mechanisms would have to be put in place to ensure that the crippled airline’s operations do not suffer and that jobs are protected.
The judicial panel has also directed the CIRP administrator to ensure that the airline meets all eight conditions set by the Civil Aviation Ministry that would enable its operations.