Go Airlines’ Bankruptcy Creates New Headache For NCLT

India’s National Company Law Tribunal (NCLT) is facing a new challenge these days as the distressed ticket holders of bankrupt carrier Go Airlines (India) Ltd. have bombarded the tribunal with refund claims.

In May this year, the NCLT allowed Go Airlines’ application for voluntary insolvency resolution.

The company, which operates ultra-low-cost airline Go First, is yet to begin its operations and has canceled its scheduled flights until 10 July as per current information due to “operational” reasons, prompting passengers to seek refunds.

“It has come to our notice that a large number of passengers are sending email requests/phone calls for refund of booked/canceled tickets in the case related to GoAir,” the NCLT said in a statement.

The tribunal said it has appointed Shailendra Ajmera as resolution professional for the insolvency resolution of Go Airlines and the passengers should submit their claims before the resolution professional as per the provisions of the bankruptcy law.

The e-mail is gofirstcirp@gmail.com, it added.

“Kindly refrain from sending emails/phone calls to NCLT officials for refund of booked/canceled tickets,” Registrar Ravinder Bedi said in the advisory.

Jefferies previously said the bankruptcy of Go Airlines, which voluntarily sought the initiation of insolvency proceedings amid cash crunch, will have limited impact on the Indian banks.

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