The National Company Law Tribunal (NCLT) on Thursday allowed an appeal to extend the resolution timeline for Go First by 90 days.

This extension, which will be effective from November 6, will last till February 4, 2024. According to the current insolvency rules, a resolution process must be completed within 180 days. However, this period can be extended such that the resolution must be completed within 330 days. If this does not happen, the adjudicating authority will initiate the liquidation process.

In May this year, Go First promoted by the Wadias had filed for voluntary insolvency before the NCLT. The carrier had blamed engine supplier Pratt & Whitney (PW). The airline alleged that it had to resort to this action because of the rising number of failing engines supplied by PW’s International Aero Engines. Go First then added that it was forced to ground 25 aircraft, which was equal to around 50 per cent of its Airbus A320neo fleet, as of May 1, 2023.

Last month, the committee of creditors (CoC) of the airline had decided to extend the resolution process by another 90 days, following which Go Air’s resolution professional made the appeal before the NCLT. The tribunal has reportedly told the RP that the resolution process must be completed within the maximum timeline.

For Go First and its lenders, the development comes at a time Jindal Power has decided not to proceed with its plan to bid for the airline after vetting its financial statements.