• The National Company Law Tribunal (NCLT) ordered the liquidation of Go First, the budget carrier that stopped flying nearly two years ago amid financial woes.

• In May 2023, the airline filed for a voluntary insolvency resolution process.

• The tribunal said it is ordering the liquidation of the corporate debtor Go Airlines (India) Ltd.

• The order comes a little over two months after the Supreme Court, on November 7, 2024, ordered the liquidation of the once-storied airline Jet Airways, which had stopped flying in April 2019.

The budget airline started operations in 2005-06 

• Go Air, which was rebranded as Go First, flew for more than 17 years before suspending operations on May 3, 2023.

• It started domestic operations in 2005-06 with the first flight from Mumbai to Ahmedabad, and then in 2018-19, launched international operations.

• Since commencing operations, Go First had placed two orders for 72 A320 neo planes each with Airbus, one in 2011-12 and another in 2016-17.

• On May 13, 2021, when the COVID-19 pandemic headwinds were blowing strong, the airline announced rebranding itself as ‘Go First’ with a focus on an ultra-low-cost business model. 

• The cash-starved airline reported a loss in the range of Rs 1,800 crore, including an Rs 800 crore notional loss due to accounting standards in the financial year ended March 2023.

What is National Company Law Tribunal (NCLT)?

• The National Company Law Tribunal (NCLT) is a quasi-judicial body that adjudicates issues relating to Indian companies.

• The NCLT was established under the Companies Act, 2013, and was constituted on June 1, 2016 by the Union government.

• It was based on the recommendation of the Justice Eradi Committee on law relating to insolvency and winding up of companies. All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, shall be disposed of by the NCLT.

• It is tasked with the key job of helping recover corporate loans.

• The NCLT is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.

• Decisions of the NCLT may be appealed at the National Company Law Appellate Tribunal (NCLAT). The NCLAT decisions can be challenged at the Supreme Court on a point of law.

• NCLT, besides a principal bench at New Delhi, has 15 other benches — Ahmedabad, Allahabad, Amravati, Bengaluru, Chandigarh, Chennai, Cuttack, Guwahati, Hyderabad, Kolkata, Mumbai, Jaipur, Kochi, Amravati, and Indore.

What is NCLAT?

• The National Company Law Appellate Tribunal (NCLAT) was constituted under Section 410 of the Companies Act, 2013, for hearing appeals against the orders of NCLT.

• It was established on June 1, 2016.

• It has two benches — one principal bench at New Delhi and the other in Chennai.

• The NCLAT is the appellate tribunal for hearing appeals against the orders passed by NCLT under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC), with effect from December 1, 2016.

• The NCLAT is the appellate tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of India under Section 202 and Section 211 of IBC.

• It is the appellate tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India - as per the amendment brought to Section 410 of the Companies Act, 2013, by Section 172 of the Finance Act, 2017, with effect from May 26, 2017.

• It is also the appellate tribunal to hear and dispose of appeals against the orders of the National Financial Reporting Authority.

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