NCLT to hear on July 21 maintainability of lessor's plea against Spicejet

Willis Lease says the low-cost carrier has defaulted on $6.87-mn payment

The National Company Law Tribunal in Delhi said on Tuesday it will hear on July 21 the maintainability of a plea filed by aircraft lessor Willis Lease Finance Corporation claiming low-cost carrier Spicejet had defaulted on a $6.87-million payment.

Spicejet’s counsel said that Willis had previously filed an insolvency plea against the airline, withdrew it due to technical defect and then filed it again. The refiled plea will be heard by the tribunal.

Counsel for Willis said the company withdrew its plea due to technical defects and then filed it again. The lessor told the court that they are ready to argue the matter based on merits.

The tribunal then questioned the lessor how a new insolvency plea was filed without first sending a notice to SpiceJet under the provisions of Insolvency and Bankruptcy Code, 2016. “Explain how Section 8 notice was not required," it asked.

Section 8 states that an operational creditor(Willis in this case)  may, on the occurrence of a default, deliver a demand notice of unpaid operational debtor copy of an invoice demanding payment of the amount involved in the default to the corporate debtor in such form and manner as may be prescribed.

The tribunal also questioned when a fresh plea could be filed in the same matter after it was withdrawn. It said the matter needed further consideration and told the parties to argue on the maintainability/non-maintainability of the plea in the next hearing.

Petitions against Spicejet

Besides the above plea, the NCLT is likely to hear on July 17 three others filed against the airline: by Aircastle (Ireland) Limited, Acres Buildwell Private Ltd and Wilmington Trust SP Services (Dublin) Ltd.

The first plea filed by Dublin-based Aircastle in NCLT on April 28 was to initiate 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(IBC) for unpaid dues of 49-odd crore.

The second plea filed on June 12 against the airline claims that SpiceJet has failed to pay its outstanding dues and also seeks to initiate insolvency proceedings.

The plea by Willis Lease Finance Corporation was filed on April 12, the one by Acres Buildwell Private Ltd was filed on February 4 and the one by Wilmington Trust SP Services (Dublin) Ltd was filed on June 11.