Delhivery, Go First Settlement Talks Fail, Legal Battle To Continue At NCLT
The startup urged the NCLT to label Go First's voluntary insolvency application as a deliberate and malicious act.
Logistics service provider Delhivery Ltd. told the NCLT on Thursday that its settlement talks with Go First had failed and their legal dispute before the tribunal would continue.
In the previous hearing, the resolution professional of Go First informed the National Company Law Tribunal that it was exploring a settlement with Delhivery, following which the bench gave a date for further consideration.
Delhivery has asserted that Go First received an advance of Rs 1.6 crore for upcoming services, but these transportation services were not being provided. The logistics firm claimed that there seemed to be little likelihood of the fulfillment due to Go First's declaration of an inoperable fleet.
BQ Prime had examined Delhivery's application, which revealed that it paid Go First Rs 57 lakh on May 2—the same day the airline filed for insolvency with the NCLT.
Go First was already aware of its inability to fulfill the services by April 28 when the airline prepared its accounts for the NCLT. The insolvency proceedings are a strategic move to hinder creditors from obtaining their rightful dues from the airline, according to Delhivery's submission.
The startup has urged the NCLT to label Go First's voluntary insolvency application as a deliberate and malicious act, and to hold the airline accountable for this with penalties.
The matter is now likely to be heard on Sept. 15.
