Delhivery Claims Go First Insolvency Plea 'Fraudulent'

Logistics firm Delhivery has challenged debt-ridden airline GoFirst‘s claim for insolvency as “fraudulent” adding to the budget carrier’s woes.

What Happened? The National Company Law Tribunal (NCLT) has accepted a notice by Delhivery that seeks to deem Go First’s voluntary insolvency petition as “fraudulent and malicious.”

Delhivery’s counsel said in its appeal that Go First received ₹57 lakh on May 2 from the logistics firm as advance for future services, knowing fully well that the Wadia Group airline was filing for insolvency. If found guilty, Go First may have to shell out anywhere between ₹1 lakh and ₹1 crore in penalties.

See Also: Go First Collapse: Which Companies Would Emerge As Winners And Losers?

The interim resolution professional (IRP) of the airline has been given two weeks to reply and the matter has been listed for hearing on July 24.

The debt-ridden airline was granted bankruptcy protection by the NCLT last month but faces an audit from the Directorate General of Civil Aviation (DGCA) before it can restart operations. The company pushed back its plans to get its planes flying again repeatedly, most recently cancelling all flights scheduled until June 12.

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Meanwhile, aircraft lessors Jackson Square Aviation Ireland and BOC Aviation (Ireland) as well as engine lessor Engine Lease Finance (ELF) BV have filed petitions challenging the moratorium on the troubled airline’s assets.

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Posted In: EquitiesNewsLegalMarketsDelhiveryGo AirGo First