Spicejet argues against maintainability of petition filed by lessors

Aircastle (Ireland) told the NCLT that it is entitled to file multiple petitions against SpiceJet for breach of multiple contracts

Budget carrier SpiceJet on Monday challenged the maintainability of one of the two petitions filed in the National Company Law Tribunal (NCLT) by aircraft leasing company Aircastle (Ireland) Limited and another one filed by Wilmington Trust SP Services (Dublin) Ltd, The Economic Times (ET) reported. Aircastle (Ireland) on Monday told the NCLT that it is entitled to file multiple petitions against SpiceJet for breach of multiple contracts.

Separate petitions were filed by the aircraft lessor since these were different aircraft and different invoices, the counsel appearing for Aircastle (Ireland) in one of the later petitions filed by the company said.

 

There were enough precedents from earlier judgements that showed that multiple petitions could be filed by the same company against the corporate debtor, the counsel argued. In its reply, SpiceJet said that the same firm cannot have multiple causes of action.

Listing the matter for August 17, the bench asked the counsel appearing for Aircastle (Ireland) to place the legal precedent on record.

The carrier also challenged the maintainability of the earlier petition filed by Aircastle (Ireland). SpiceJet was granted 10 days to file a rejoinder.  The matter has been listed for arguments on August 8.

Last week, promoter and MD Ajay Singh offered to infuse about Rs 500 crore in the company in order to strengthen the financial position of the budget carrier. The infusion will be done through subscription to equity shares or convertible securities on a preferential basis.

The airline has been under "enhanced surveillance" of the Directorate General of Civil Aviation (DGCA) since June 22 as a "precautionary" measure.