The National Corporate Legal Appeal Tribunal (NCLAT) on Friday rejected the plea of busy Bee Airways, backed by EasemyTrip co-founder Nishant Pitti, challenging the liquidation of bankrupt airlines in the first place.
A bench, led by NCLAT chairman Ashok Bhushan, ordered the National Corporate Court (NCLT) order on January 20 that allowed Go First creditors to liquidate, citing the airline’s lack of assets and incredible recovery plans.
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Busy Bee Airlines has argued that it is ready to buy and submit a revival plan first. It believes the airline retains valuable intangible assets, including its Civil Aviation Administration (DGCA) license, which may contribute to its acquisition. The company also claimed that NCLT passed a liquidation order without considering its objections.
The order is to remove the relief of Go First creditors, allowing them to conduct liquidation to restore total dues ₹65.21 million.
The Court of Appeal earlier directed the liquidator to submit minutes of the meeting of the Commission of Creditors (COC) which decided to end the airline.
Busy Bees, a majority owned by Pitti and linked to Spicejet chairman Ajay Singh, initially expressed interest in getting it first, but withdrew the bid after the airline lost its operating aircraft. It later re-enters the process through improvements ₹Rs 18 billion discount – ₹$16 billion – from ₹2.9 million ₹5 billion.
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Another bid by Sky One Airways, led by Jaideep Mirchandani, was withdrawn after a Delhi High Court order in April 2024, allowing lessors to recover all 54 leased aircraft, effectively making it inevitable in the first place.
NCLAT also rejected a request from Mumbai-based trade union Bhartiya Kamgar Sena, which opposes liquidation on the grounds that nearly 5,000 employees will be left without recourse. The union urged the court to continue operations of the airline until the arbitration proceedings ended in Singapore with US engine supplier Pratt & Whitney.
First of all ₹Rs 6,521 crore for the Union of Lenders (including the Central Bank of India) ₹Baroda Bank (19.87 million) (Baroda) ( ₹14.3 million), Deutsche Bank ( ₹13.2 billion) and IDBI Bank ( ₹580 million).
The Wadia Group-backed airline filed for voluntary bankruptcy in May 2023, accusing Pratt & Whitney’s Engine of supply failures, which took much of its fleet. The airline sought liquidation in September 2024 after the solution failed.
The NCLT then appointed Dinkar Venkatasubramanian as the new liquidator, who was responsible for the affairs from former resolution professional Shailendra Ajmera.
