The NCLT listed the matter for next hearing on September 15 after Delhivery said that its settlement talks with the troubled airline have failed
In the previous hearing, Go First’s resolution professional informed the NCLT that the airline was exploring settlement talks with Delhivery
Delhivery moved the NCLT against Go First in June seeking a refund of payments worth INR 1.58 Cr claiming that the airline took payments despite heading towards insolvency
The deadlock between Delhivery and Go First continues as the logistics giant on Thursday (August 17) reportedly informed the National Company Law Tribunal (NCLT) that its settlement talks with the troubled airline have failed.
In a submission before the tribunal, Delhivery, as per BQPrime, said that its legal proceedings against Go First would continue. The matter has now been listed for hearing on September 15.
During the previous hearing, the resolution professional of the beleaguered airline told the NCLT that it was exploring settlement talks with Delhivery. Following this, the tribunal had extended the date of hearing for further proceedings.
The latest development comes more than two months after Delhivery moved the NCLT against Go First. The logistics major alleged that the airline took payments worth nearly INR 1.6 Cr from it despite knowing that it was headed towards insolvency.
Delhivery sought a refund of the payments and directions to the airline to pay a penalty.
Delhivery’s petition alleged that Go First failed to ‘honour its commitment’ to render domestic cargo consignment services in lieu of received payments. The plea further claimed that the airline received the money in a fraudulent and malafide manner.
Delhivery claimed that Go First airline ‘was well aware of its financial position’ by April 30, when the latter received the approval of its board to file the plea for voluntary insolvency. Despite this, the logistics major alleged, Go First went ahead and received INR 57 Lakh in payments from Delhivery on May 2, the same day it filed for insolvency.
“The sole intent of Go First in preferring the insolvency petition is to hijack the process in detriment of Delhivery’s bonafide, the plea is an abuse of process of law,” the petition added.
Go First declared bankruptcy in May saying that the faulty engines supplied by engine maker Pratt & Whitney forced it to ground half of its fleet.
The legal saga comes at a time when Delhivery has cut back on its losses and shored up its topline. The logistics major’s loss declined 78% year-on-year (YoY) to INR 89.5 Cr in the first quarter (Q1) of the financial year 2023-24 (FY24). Revenue from services jumped 11% YoY to INR 1,929.8 Cr in Q1 FY24 from INR 1,745.7 Cr in Q1 FY23.
Shares of Delhivery ended Thursday’s session nearly flat at INR 420.60 on the BSE.