SMBC Aviation Capital Ltd moved to National Company Law Appellate Tribunal (NCLAT) against the order passed by the National Company Law Tribunal (NCLT) allowing Go First's voluntary plea to initiate insolvency proceedings. The NCLAT has differed the hearing till May 12.
While arguing advocates of SMBC Aviation stated that they had terminated their leases with Go First even before NCLT admitted the airline's voluntary insolvency plea. He submitted that there was no tearing for NCLT to admit the plea as Go First has itself stated in the plea that it had not defaulted in payments to financial creditors, while emphasising that the company law tribunal had not granted the lessors an opportunity to put forth their case.
The lessor said that Go First has no right over aircrafts and that the proceedings were initiated only to confuse issues and defeat its rights as a lessor of the aircraft.
SMBC argued that Go First got a resolution professional of their choice appointed and are now trying to take possession of aircraft that they do not own.
Even though the lessor pressed the appellate tribunal to grant an order of status quo, the tribunal did not pass any such order as the resolution professional has to be heard before any interim order is passed.
The principal bench of NCLT admitted Go First’s voluntary plea to initiate insolvency resolution process. The tribunal appointed an interim resolution professional (IRP) while suspending the board and putting a moratorium on the debt-ridden airline's financial obligations.
The Wadia Group-owned Go First has liabilities worth around INR 1.1bn