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SpiceJet Wins NCLT Case, Faces 7 More
19 Aug
Summary
- NCLT allowed Aviator ML to withdraw insolvency plea against SpiceJet.
- Tribunal imposed costs of ₹15 lakh on both parties for settlement delay.
- Seven other insolvency petitions against SpiceJet will be heard afresh.
The National Company Law Tribunal (NCLT) has permitted aircraft lessor Aviator ML to retract its insolvency petition against SpiceJet, a move that offers some relief to the financially strained airline. This development stems from a settlement reached between SpiceJet and Aviator ML.
However, the tribunal expressed strong disapproval of the process, levying a combined cost of ₹15 lakh on both SpiceJet and Aviator ML. Each party must deposit ₹7.5 lakh into the Prime Minister's National Relief Fund within seven days, as they only informed the NCLT about their settlement late in the proceedings.
With Aviator ML's petition now withdrawn, the NCLT will re-evaluate the seven remaining insolvency cases filed against SpiceJet by other aircraft lessors. The airline welcomed the order, viewing it as a positive stride towards resolving outstanding creditor and lessor matters. SpiceJet reiterated its commitment to constructive engagement with its partners to find mutually agreeable solutions.
