The National Company Law Appellate Tribunal (NCLAT) on Friday rejected a plea by Busy Bee Airways, backed by EaseMyTrip co-founder Nishant Pitti, challenging the liquidation of bankrupt airline Go First.
A bench led by NCLAT chairperson Justice Ashok Bhushan upheld the National Company Law Tribunal’s (NCLT) 20 January order, which allowed Go First’s creditors to proceed with liquidation, citing the airline’s lack of assets and an unviable recovery plan.
Read this | NCLT orders liquidation of Go First, ending 20-month insolvency saga
Busy Bee Airways had argued that it was prepared to acquire Go First and submit a revival plan. It contended that the airline retained valuable intangible assets, including its Directorate General of Civil Aviation (DGCA) licence, which could facilitate its acquisition. The company also claimed that the NCLT passed the liquidation order without considering its objections.
The order comes as a relief for Go First’s creditors, allowing them to proceed with liquidation to recover dues totaling ₹6,521 crore.
The appellate tribunal had earlier directed the liquidator to submit minutes of the Committee of Creditors (CoC) meeting that led to the decision to wind up the airline.
Busy Bee, majority-owned by Pitti and linked to SpiceJet chairman Ajay Singh, had initially expressed interest in acquiring Go First but withdrew its bid after the airline lost operational aircraft. It later re-entered the process with an improved ₹1,800 crore offer—up from ₹1,600 crore—and raised its upfront payment proposal from ₹290 crore to ₹500 crore.
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Another bid, from Sky One Airways led by Jaideep Mirchandani, was withdrawn after an April 2024 Delhi High Court order allowed lessors to repossess all 54 leased aircraft, effectively rendering Go First unviable.
The NCLAT also dismissed a plea from Mumbai-based trade union Bhartiya Kamgar Sena, which opposed the liquidation on the grounds that nearly 5,000 employees would be left without recourse. The union urged the tribunal to keep the airline operational until arbitration proceedings with US-based engine supplier Pratt & Whitney concluded in Singapore.
Go First owes ₹6,521 crore to a consortium of lenders, including Central Bank of India ( ₹1,987 crore), Bank of Baroda ( ₹1,430 crore), Deutsche Bank ( ₹1,320 crore), and IDBI Bank ( ₹58 crore).
The Wadia Group-backed airline filed for voluntary insolvency in May 2023, blaming Pratt & Whitney’s engine supply failures, which grounded much of its fleet. After a failed resolution process, the airline sought liquidation in September 2024.
Subsequently, the NCLT appointed Dinkar Venkatasubramanian as the new liquidator, who took charge of the affairs from the previous resolution professional, Shailendra Ajmera.
