NCLT questions maintainability of insolvency plea filed against SpiceJet

The National Company Law Tribunal (NCLT) on Tuesday questioned the maintainability of the insolvency plea filed against air carrier SpiceJet by one of its operational creditors Willis Lease Finance Corporation.

A two-member NCLT bench comprising Members Mahendra Khandelwal and Rahul Prasad Bhatnagar observed that Willis Lease Finance Corporation has withdrawn its insolvency plea for the same dispute in March 2023 and has approached again with a new plea.

The bench wanted to know as Willis Lease Finance Corporation, an aircraft lessor, had filed again for a similar cause of action within a few months.

The NCLT posted the matter on July 21 for the next hearing over the plea moved by Willis Lease Finance Corporation, the US-based firm whose core business is leasing commercial aircraft engines to airlines.

During the proceedings of the insolvency tribunal, Willis' counsel submitted that they had withdrawn after the court's permission and refiled it, and hence, it is maintainable.

Willis's counsel submitted that SpiceJet owed USD 6.87 million.

Presently SpiceJet is facing other insolvency pleas before the NCLT also, filed by aircraft lessors Aircastle and Wilmington.