Go First Grounds: NCLT Orders Liquidation of Budget Airline

The National Company Law Tribunal ordered the liquidation of Go First, a budget airline that ceased operations due to financial difficulties. The decision was backed by unanimous approval from creditors, following a failed insolvency resolution. Dinkar Venkatasubramanian has been appointed as liquidator to handle the process.

The National Company Law Tribunal (NCLT) has ordered the liquidation of Go First, a budget airline known for its ultra-low-cost model, following two years of halted operations due to financial struggles. This decision by the tribunal follows a voluntary insolvency resolution filing by the airline in May 2023.

In a comprehensive 15-page order, the NCLT emphasized the autonomy of the Committee of Creditors (CoC), which unanimously voted for the airline's liquidation. The tribunal cited no grounds to contest the commercial wisdom of the CoC. This development mirrors the recent liquidation of Jet Airways, which the Supreme Court mandated in November 2024.

Dinkar Tiruvannadapuram Venkatasubramanian will serve as the liquidator, tasked with diving into the airline's financial affairs and initiating recovery processes. The order marks the end of an era for Go First, which once operated for over 17 years before ceasing flights in May 2023.

(With inputs from agencies.)