Go First crisis: NCLT to hear 2 insolvency petitions today

New Delhi: As Go First awaits the National Company Law Tribunal ruling on its voluntary insolvency resolution plea, the tribunal is set to hear on Monday two petitions seeking insolvency proceedings against the crisis-hit airline.
Meanwhile, Go First has cancelled all its flights till May 12, extending the suspension of operations by another three days. On May 2, the airline had announced cancellation of all flights for three days (May 3-5). Then on Thursday, it cancelled all its flight till May 9. The Wadia group airline is also not taking new bookings till May 15.
The embattled airline said that it was cancelling the flights due to operational reasons, adding that a full refund will be issued to the affected passengers. On Thursday, the Directorate General of Civil Aviation had directed Go First to ensure that refunds to flyers are processed on time.
With liabilities of Rs 11,463 crore and a financial crunch, the Wadia group-owned airline has sought voluntary insolvency resolution proceedings as well as an interim moratorium on financial obligations.
After hearing the plea on Thursday, the NCLT reserved its order. The tribunal is set to hear two insolvency petitions filed against the airline on Monday, according to lawyers.
The petition filed by SS Associates Services Pvt Ltd, which was providing transport services to the carrier, is with respect to a claim of around Rs 3 crore. A pilot has also filed a petition claiming dues for his services provided to the airline. The amount involved is more than Rs 1 crore. The two petitions are scheduled to be heard by the Principal Bench of the NCLT.
Go First, in its petition filed before the tribunal on May 2, sought directions to restrain aircraft lessors from taking any recovery action as well as restrain the aviation watchdog and suppliers of essential goods and services from initiating adverse actions.
Another request is that the DGCA, Airports Authority of India and private airport operators should not cancel any departure and parking slots allotted to the company.

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