NCLT sends notice to SpiceJet on lessor's insolvency plea, seeks reply

The National Company Law Tribunal(NCLT), Delhi on Monday sought a response from Spicejet on a plea by the airline’s lessor Aircastle over unpaid dues.

Dublin-based Aircastle moved the NCLT seeking the initiation of insolvency proceedings against the airline under Section 9(application for initiation of corporate insolvency resolution process by the operational creditor) of the Insolvency and Bankruptcy Code.  

A two-member Principal bench of President Ramalingam Sudhakar and Member Avinash K Srivastava issued a notice to Spicejet to file their reply. The next hearing in the matter is on May 17.

Commenting on the case, a Spicejet spokesperson said, “In the Aircastle issue, notice was issued in the normal course. There was no adverse ruling against SpiceJet. The court has recognised the fact that parties are under settlement discussions and they can continue to pursue the same.”

According to the NCLT website, two more petitions for insolvency resolution proceedings against SpiceJet are pending. The plea by Willis Lease Finance Corporation was filed on April 12 and the one by Acres Buildwell Private Ltd was filed on February 4.