Go First bankruptcy: Delhivery alleges that Go First filed for insolvency with deceitful intent

Updated : Jun 13, 2023 13:58
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Editorji News Desk

Delhivery, the most recent applicant in the Go First insolvency crisis claims that the airline took payments from it while it was voluntarily entering into insolvency procedures.

Delhivery alleged that Go First in total has received ₹1.58 crore from the logistics company as advances for services that the airline was expected to provide. The airline itself has indicated that its fleet is inoperable, therefore the services have not yet been rendered and it is quite doubtful that they will be in the future. 

Delhivery in its application claimed that Go First took a payment of ₹57 lakh on May 2 from it, the same day on which it filed for insolvency before the NCLT. 

As per Delhivery's application, Go First prepared its statement of finances to be submitted to the NCLT on April 28 while fully aware of its inability to provide the necessary services. The logistics firm claims that the airline fraudulently obtained the payment of ₹57 Lakh.

Delhivery has argued before the tribunal that the insolvency procedures are a ploy to keep the creditors from receiving their fair compensation from the airline.

The logistics firm has sought the NCLT to rule that Go First's voluntary insolvency procedures were started initiated fraudulently and maliciously and that the airline is responsible for paying a fine as a result. On July 24, the matter will be heard again.

Go First filed for voluntary insolvency proceedings on May 2. The airline had also filed for an interim moratorium on financial obligations due to liabilities of Rs 11,463 crore. The airline has been grounded since the beginning of May. It has extended its suspension multiple times. As per its latest announcement, operations will be suspended till June 14th. 

 

Go First

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