Thursday, August 17, 2023

Go First's settlement talks with Delhivery fail, legal battle to continue at NCLT

Settlement talks between the grounded airline Go First and logistics company Delhivery have failed, the National Company Law Tribunal (NCLT) was informed on August 17.

Both Delhivery and Go First have now decided to continue their legal battle at the NCLT. The tribunal has accordingly sought the response of Go First's Resolution Professional (RP) to Delhivery's plea. The case is now likely to come up for hearing on September 15.

During the hearing on August 17, NCLT also issued notice to an application by aircraft lessor DAE (SY 22) 13 Ireland Designated Activity Company to be exempted from the moratorium. Go First's RP has undertaken to file a reply to this application as well.

On July 24, Go First's RP told the NCLT that it is exploring a settlement with  Delhivery. The tribunal accordingly deferred the case to the third week of August.

According to the application filed in NCLT by Delhivery, the airline received over Rs 1.58 crore from the logistics company for providing domestic cargo consignment services but never acted on it. The money was paid according to the terms of an agreement that the companies entered into in 2020 and was renewed in August 2022.

The plea, which Moneycontrol has reviewed, notes that Go First received Rs 57 lakh on May 2, the day it filed for insolvency, despite being aware that it may not be able to provide services in the future as it does not have an operable fleet according to its own admission.

The plea notes that "the sole intent of Go First in preferring the insolvency petition is to hijack the process in detriment of Delhivery's bonafide, the plea is an abuse of process of law."

17/08/2023 SN Thyagarajan/Moneycontrol

To Read the News in full at Source, Click the Headline


Post a Comment