The Resolution Professional of the grounded airline Go First argued in the Delhi High Court on Thursday that disputes related to the Insolvency and Bankruptcy Code, 2016, should be adjudicated exclusively by the National Company Law Tribunal.
This argument was presented in a series of writ petitions filed by the lessors of Go First against the Directorate General of Civil Aviation concerning the de-registration of their aircraft.
Senior Advocate Neeraj Kishan Kaul, representing the RP, said that according to the IBC, all disputes must initially go through the NCLT.
If a party is dissatisfied with the tribunal's decision, they can file an appeal with the National Company Law Appellate Tribunal and, eventually, with the Supreme Court. Kaul contended that the high court does not have the jurisdiction to decide insolvency disputes in its writ jurisdiction.
In a related development, the National Company Law Tribunal granted a 90-day extension to the corporate insolvency resolution process for Go First, effective from Nov. 6 and concluding on Feb. 4.
If a resolution is not achieved within this extended period, the NCLT is mandated to order the company's liquidation. Go First had initiated the insolvency process earlier in the year, expressing voluntary intent under Section 10 of the IBC.
On May 10, the NCLT accepted Go First's insolvency plea and appointed a Resolution Professional to oversee the company's affairs. The NCLAT upheld this decision on May 22, providing an opportunity for lessors to address the NCLT with relevant applications in the matter.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.