NCLT Extends Go First's Insolvency Resolution Process By 90 Days
A company can be given a one-time relief of 90 days to complete the process.
The National Company Law Tribunal prolonged on Thursday the corporate insolvency resolution process for grounded airline Go First by an additional 90 days.
The extension, effective Nov. 6, is set to conclude on Feb. 4. The NCLT emphasised the completion of the resolution plan within this specified timeframe.
Companies undergoing insolvency must undergo a resolution process, ideally completed within 180 days. However, the NCLT can extend this period to a maximum of 330 days. If no resolution is reached by the end of this extended period, the NCLT is obligated to order the company's liquidation, according to the law.
A company can be given a one-time relief of 90 days to complete the process. Since this has been given now, the relief cannot be extended beyond Feb. 4.
Earlier this year, Go First initiated a legal process by filing a plea in the NCLT under Section 10 of the Insolvency and Bankruptcy Code, expressing a voluntary intent to undergo the CIRP.
On May 10, the NCLT accepted Go First's insolvency plea and took the company into the CIRP. As part of this, a resolution professional was appointed to oversee and manage the company's affairs during the resolution process.
On May 22, the National Company Law Appellate Tribunal upheld the decision of the NCLT that had admitted Go First into insolvency. The appellate tribunal had also given the lessors the opportunity to move to the NCLT with any relevant applications in the matter.
