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Business News/ Companies / News/  SpiceJet hit with new insolvency claims by three lessors over 77 crore dues
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SpiceJet hit with new insolvency claims by three lessors over ₹77 crore dues

The NCLT issued a notice to SpiceJet on Thursday, asking it to reply within two weeks, and deferred the hearing to 30 May.

Pramod Nair, a senior advocate representing the lessors, said the plea was based on a judgement of the High Court of Justice in London and the contract between the parties.Premium
Pramod Nair, a senior advocate representing the lessors, said the plea was based on a judgement of the High Court of Justice in London and the contract between the parties.

Three lessors of budget airline SpiceJet – AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland –  have moved the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline for allegedly defaulting on rental dues of 77 crore. The tribunal issued a notice to SpiceJet on Thursday, asking it to reply within two weeks, and deferred the hearing to 30 May.

Pramod Nair, a senior advocate representing the lessors, told the court the plea was based on a judgement of the High Court of Justice in London and the contract between the parties.

Senior advocate Krishnendu Dutta opposed the notice, saying it could hamper the airline's attempts to raise funds to pay its creditors, including lessors. Dutta also questioned the maintainability of the plea, arguing the case rested on the judgement of a foreign court rather than the contract between the parties. 

He said the lessors had also moved a high court to execute the foreign decree and were thus approaching multiple forums over the same dispute. He also claimed the lessors had not filed a single invoice demonstrating that SpiceJet had defaulted.

SpiceJet has faced a series of insolvency pleas from various parties in the NCLT over pending dues. These include Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle, and Alterna Aircraft. 

The NCLT has already rejected the pleas of Willis Lease Finance and Wilmington Trust SP, while SpiceJet reached a settlement with Celestial Aviation. The pleas of Aircastle and Alterna Aircraft are still pending.

Maran vs SpiceJet

In late March, former SpiceJet promoter Kalanithi Maran and KAL Airways moved the Delhi high court, seeking fresh contempt proceedings against the airline and its chairman Ajay Singh for failing to adhere to previous court rulings related to the enforcement of an arbitral award. The case pertains to the execution of an arbitral award of 579 crore, plus interest, that Maran won in 2018. The court issued a notice to SpiceJet in the plea and adjourned hearing in the case to 25 April.

Maran alleged that SpiceJet has defied several court orders, including a 5 February directive which asked SpiceJet Ltd to pay 50 crore to the former promoter within six weeks.

 

 

 

 

 

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ABOUT THE AUTHOR
Krishna Yadav
Krishna, a lawyer turned journalist, is a key member of Mint's corporate team. He covers major legal battles in Delhi's courtrooms, with a focus on finance, markets, and policy. Additionally, he crafts easy-to-understand explainers for complex stories and holds a PG Diploma from the renowned Asian College of Journalism.
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Published: 18 Apr 2024, 01:43 PM IST
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