Busy Bee Airways Pvt Ltd, a company backed by EaseMyTrip co-founder Nishant Pitti and unsuccessful bidder for Go First (Mumbai International), is challenging the January 20 National Company Law Tribunal ruling allowing the liquidation of the low-cost carrier.
As reported by CNBCTV 18, Busy Bee's counsel, Apoorv Aggarwal, argues his client should be allowed to submit a new resolution plan and that it was in the national interest to revive Go First. He said allowing the liquidation to proceed would reduce competition and adversely impact Indian consumers. Aggarwal also said the administrator, referred to locally as the resolution professional, had failed to furnish his client with detailed data about Go First's assets, liabilities, and financial status.
The appeal was mentioned before the New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) on January 23, the matter entered as Busy Bee Airways Pvt. Ltd. v. Dinkar T Venkatasubramanian, Liquidator, Go Airlines (India) Ltd. & Ors.
Pitti was one half of a consortium (the other being SpiceJet managing director and majority owner Ajay Singh) that lodged a bid to buy Go First during a sales campaign last year. However, Pitti walked away after a court ruling ordered the deregistration of Go First's aircraft and their return to their owners, ruining any prospects of a relaunch. In any case, the Singh/Pitti offer, which included an upfront cash payment of just INR5 billion rupees (USD58 million), underwhelmed the administrator and committee of creditors.
Their bid also included a cut of the proceeds from an upcoming lawsuit against Pratt & Whitney, should that suit succeed. However, Go First's administrator had admitted claims of approximately INR120 billion (USD1.39 billion) against the carrier and the decision was made that liquidation would likely reap a better return for out-of-pocket lenders and other creditors.
The NCLAT had adjourned the matter until January 29 and granted Busy Bee permission to file an additional affidavit before then.
