 "A SpiceJet passenger aircraft prepares to land at Sardar Vallabhbhai Patel international airport in Ahmedabad")
The National Company Law Tribunal (NCLT) on Thursday granted low-cost carrier SpiceJet and aircraft lessor Celestial Aviation time until January 18 for settlement after the airline informed the tribunal that they have made partial payments to the lessor.
The tribunal told the airline to consider settlements with lessors due to a Ministry of Corporate Affairs' notification that exempted aviation leases from the moratorium.
The notification exempted all transactions and agreements related to aircraft and their engines from moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC).
With this notification, the Indian government has officially adopted the Cape Town Convention (CTC), an international treaty that offers time-bound solutions for lessors to repossess aircraft, thereby reducing their inherent risks.
In October, both parties told the tribunal they were exploring the possibility of a settlement. SpiceJet is also involved in an insolvency dispute with three other lessors, namely Aircastle (Ireland) Ltd, Wilmington Trust SP Services (Dublin) Ltd, and Willis Lease Finance Corporation.
The NCLT on Monday dismissed Willis Lease Finance's plea to initiate insolvency against SpiceJet over unpaid dues due to some technical defects in their plea.
