Go First informs NCLT it is exploring settlement with Delhivery

Crisis-hit Go First on Monday informed the National Company Law Tribunal (NCLT) it is settling its dispute with logistics company Delhivery.

The Resolution Professional of the air carrier, which is currently going through Corporate Insolvency Resolution Process (CIRP) told the NCLT, a settlement is being tried.

“We are trying for a settlement with logistics company Delhivery. We are aware of it. However, no final decision is taken so far in this regard,” said an advocate representing the RP of the cash-strapped and grounded airline.

When asked about any time frame by the insolvency tribunal, he said “any nearby date, for the settlement.” After this, NCLT deferred the matter to the third week of August for the next hearing.

Delhivery had moved NCLT alleging that the initiation of CIRP was fraudulent and malicious.

It had said the airline received over Rs 1.58 crore from the logistics company for rendering domestic cargo consignment services. The money was paid as per the terms of an agreement that both companies entered into in 2020 and was last renewed in August 2022.

According to Delhivery, 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 render the services even in the future as Go First does not have an operable fleet in its own admission.

On June 8, NCLT had issued notice to the Interim Resolution Professional (IRP) of Go First over the plea filed by the supply chain company.

NCLT on May 10 admitted the plea of Go First to initiate voluntary insolvency resolution proceedings.

(Except for the headline, this story has not been edited by The Federal staff and is auto-published from a syndicated feed.)