**Go First Faces Lawsuit Over Missing Leased Tyres from Bridgestone**
Bankrupt airline Go First is now embroiled in a legal dispute concerning missing tyres that were leased to it by Japanese tyre manufacturer Bridgestone. The tyre company, which had leased 1,400 tyres to the airline at a monthly rate ranging from $200 to $700 per tyre, is seeking their return. Bridgestone Aircraft Tire Manufacturing (Thailand) Company, a subsidiary of Bridgestone, has filed a petition with the National Company Law Tribunal (NCLT) in Delhi, asserting that the tyres were leased and not sold, thus they should not be considered part of the airline’s liquidated assets.
An industry executive familiar with the situation stated, “The main argument is that the tyres for Go First’s aircraft were leased and not sold, meaning they do not belong to the bankrupt airline. While the operational creditor’s claim is for ₹3.2 crore, the actual loss, which cannot be included in the resolution process, stems from the inability to lease the tyres.”
To date, the NCLT has conducted only one hearing in July. In its order on July 21, the tribunal issued a notice to the liquidator, requiring a response within two weeks. The next hearing, originally scheduled for September 2, has been postponed to October 9.
Neither EY, the liquidator, Dinkar T Venkatsubramanian, nor Bridgestone Aircraft Tire Manufacturing (Thailand) has responded to inquiries regarding the case. Sukrit Kapoor, a disputes and litigation partner at King Stubb & Kasiva, who represents Bridgestone, refrained from commenting, citing the ongoing judicial process.
The origins of this dispute date back to 2019 when Go First entered into a five-year lease agreement with Bridgestone Hong Kong. Following the closure of Bridgestone’s Hong Kong operations, the lease was transferred to its Thailand subsidiary. The lease is set to expire in October 2024, prior to the airline’s liquidation order in January 2025. After the lease expiration, Go First was granted a seven-month grace period to return the tyres. However, upon failing to do so, Bridgestone filed its petition with the NCLT in July.
This tyre dispute is just one of several legal challenges facing Go First. The airline reportedly owes around ₹6,200 crore to various creditors, including the Central Bank of India (₹1,934 crore), Bank of Baroda (₹1,744 crore), and IDBI Bank (₹75 crore). Additionally, Go First is pursuing a $1 billion arbitration case against engine manufacturer Pratt & Whitney at the Singapore International Arbitration Centre, claiming that faulty engines contributed to its operational downfall. The outcome of this arbitration is considered crucial for Go First’s ability to repay its lenders.
Since May 3, 2023, Go First has been grounded following a voluntary insolvency filing by its promoter, the Wadia Group, due to delays in engine deliveries from Pratt & Whitney. At that time, the airline’s debts exceeded ₹11,000 crore, owed to banks, financial institutions, vendors, and aircraft manufacturers.
**FAQ**
**What is the current legal issue involving Go First and Bridgestone?**
Go First is facing a lawsuit from Bridgestone over missing tyres that were leased to the airline. Bridgestone claims the tyres were leased and should not be included in Go First’s liquidated assets.
