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regular-article-logo Friday, 22 November 2024

Engine maker Pratt & Whitney opposes GoFirst's attempt to enforce arbitration ruling

On Wednesday the National Company Law Tribunal (NCLT) had admitted the low-cost airline’s plea for voluntary insolvency

Our Bureau Mumbai Published 13.05.23, 05:10 AM
Representational image.

Representational image. File Photo

Engine maker Pratt & Whitney, which has come into focus after Go First filed for voluntary insolvency, has opposed the carrier’s attempt to enforce an arbitration ruling even as it has argued in a Delaware court that the airline’s bankruptcy filing has increased the ‘risks’ for it.

On Wednesday the National Company Law Tribunal (NCLT) had admitted the low-cost airline’s plea for voluntary insolvency and imposed a moratorium which effectively bars the lessors from taking possession of its aircraft.

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Go First has also maintained that it has been facing financial distress due to inherently defective engines supplied by Pratt & Whitney.

Before knocking on the doors of NCLT, Go First had commenced an arbitration against Pratt & Whitney under the 2016 Rules of the Singapore International Arbitration Centre (SIAC) – seeking compensation in excess of Rs 8,000 crore and other final relief. Subsequently, in the emergency arbitration, the emergency arbitrator passed an interim award in favour of the airline.

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