The National Company Law Tribunal (NCLT) has admitted Go First’s voluntary insolvency plea, a move which will help the airline to attempt a revival and complicate foreign lessors’ efforts to repossess their planes.

The NCLT has also appointed Abhilash Lal as interim resolution professional (IRP) to run the debt-ridden company. The IRP has been directed to keep Go First as a going concern and not to retrench any employee.

Meanwhile, Go First has announced cancellation of all flights until 19 May due to 'operational reasons'.

The budget carrier, which owes Rs 6,521 crore to financial creditors, had filed for insolvency resolution on 2 May.

NCLT, in its judgment on 10 May, said that “we admit the plea of Go Airlines for insolvency proceedings."

A two-member bench comprising President Justice Ramalingam Sudhakar and L N Gupta also put the company under protection of moratorium and directed the suspended board of directors to assist the IRP to run the company during insolvency proceedings.

“This is a historic ruling as an application of insolvency has been admitted so fast. The order prevents a viable airline from becoming an unviable one. The purpose of IBC has always been revival,” said Go First CEO Kaushik Khona after the NCLT order.

On 4 May, the NCLT had reserved its order after hearing the Wadia group-owned Go First and its aircraft lessors who have opposed the petition seeking interim protection.

Go First, which has total liabilities of Rs 11,463 crore, has blamed the non-availability of Pratt & Whitney engines for the current crisis and stopped flights from 3 May. The airline said that as many as 28 planes or more than half of its fleet are grounded due to the non-supply of engines by Pratt & Whitney (P&W).

The country’s fourth-largest carrier moved the NCLT seeking voluntary insolvency resolution proceedings as well as an interim moratorium on its financial obligations.

Meanwhile, aircraft lessor SMBC Aviation Capital Ltd on Wednesday moved the NCLAT (National Company Law Appellate Tribunal) against the NCLT order passed earlier in the day allowing Go First's voluntary plea to initiate insolvency proceedings.

SMBC aviation capital’s appeal against Go First insolvency is listed at NCLAT on 11 May.