Wednesday, July 17, 2024 Engine Lease Company wins major legal battle against Go First as NCLT orders the return of four engines, marking the end of a longstanding dispute. The National Company Law Tribunal (NCLT) has mandated that Go First return four engines to Engine Lease Finance B.V.
This directive was handed down by the dedicated bankruptcy court on July 11. The resolution professional managing the airline’s insolvency confirmed plans to adhere to the tribunal’s ruling, with the process of returning the initial engine already underway. The resolution concludes a longstanding disagreement between the Irish leasing company and Go First, originating from when the airline halted operations.
In April 2024, the Delhi High Court demanded the deregistration and return of leased aircraft, setting the stage for Engine Lease Finance to seek the retrieval of its engines. Engine Lease Finance was among 16 entities that petitioned the NCLT in May to secure orders for the recovery of their assets from Go First. The other engine lessors are scheduled to make their cases to the NCLT on August 9, 2024, advocating for the return of their engines.
The 60-day extension granted to Go First for completing its Corporate Insolvency Resolution Process (CIRP) has expired. The final deadline to wrap up the insolvency proceedings is set for August 3. When the National Company Law Tribunal (NCLT) extended the timeline in June, it was declared to be the final extension.
Under India’s insolvency.