NCLAT rejects Busy Bee Airways plea challenging Go First liquidation

The National Company Law Appellate Tribunal (NCLAT) on Friday rejected the plea by Busy Bee Airways challenging the liquidation of bankrupt airline Go First.

 

Busy Bee is backed by EaseMyTrip co-founder Nishant Pitti.

 

A bench led by NCLAT chairperson Justice Ashok Bhushan cited the airline’s lack of assets and an unviable recovery plan as the reason for upholding the National Company Law Tribunal’s (NCLT) January 20 order that had allowed the lenders of the bankrupt airline to go ahead with liquidation.

 

Busy Bee Airways had told the NCLAT in the last hearing that it was in discussions with Go First's lenders to submit a bid to rescue the airline.

 

Last year, Pitti-backed Busy Bee Airways and SpiceJet Chairman Ajay Singh made a joint bid for Go First. The bid, however, was rejected by the resolution professional for Go First. In a fresh plea, Busy Bee Airways had told the appellate tribunal that it should be allowed to submit a revised resolution plan for the bankrupt airline.

 

The National Company Law Tribunal (NCLT) on January 20 ordered the liquidation of low-cost carrier Go First at the request of its Committee of Creditors (CoC), thus bringing an end to the 20-month insolvency proceedings. Go First filed for voluntary insolvency on May 2, 2023, under Section 10 of the Insolvency and Bankruptcy Code (IBC). The insolvency plea was accepted by the NCLT on May 10, 2023.