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Business News/ Companies / News/  NCLT serves notice to SpiceJet on Aircastle plea
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NCLT serves notice to SpiceJet on Aircastle plea

Last week, Aircastle filed an insolvency application against the low-cost carrier, seeking to initiate corporate insolvency resolution process under Section 9 of the Insolvency and Bankruptcy Code.

Spicejet had earlier said that it was confident of resolving the matter without court proceedings and was in discussions with Aircastle’s senior leadership teamPremium
Spicejet had earlier said that it was confident of resolving the matter without court proceedings and was in discussions with Aircastle’s senior leadership team

SpiceJet has received a notice from the National Company Law Tribunal (NCLT) in New Delhi, following an application by aircraft lessor Aircastle (Ireland) Ltd over non-payment of dues by the airline.

The bench headed by Justice Ramalingam Sudhakar, will hear the matter on May 17.

Last week, Aircastle filed an insolvency application against the low-cost carrier, seeking to initiate corporate insolvency resolution process under Section 9 of the Insolvency and Bankruptcy Code.

The airline had earlier said that it was confident of resolving the matter without court proceedings and was in discussions with Aircastle’s senior leadership team.

“There was no adverse ruling against SpiceJet. The court has recognized that parties are under settlement discussions, and they can continue to pursue the same," said a SpiceJet spokesperson.

Operational creditors are a class of creditors who have dues against goods or services they provided to the company.

Separately, lender Credit Suisse moved the Supreme Court on 21 April, filing a contempt petition against SpiceJet over allegations that the airline had failed to pay dues that were part of a settlement. SpiceJet had claimed that the settlement amount is subject to the Reserve Bank of India‘s approval, and the airline could not begin payments as per the schedule. It had told the court that it made the April payment on schedule, and the payment for May will also be made as per schedule.

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ABOUT THE AUTHOR
Priyanka Gawande
Priyanka Gawande is a senior legal correspondent at Mint. She has worked as legal reporter for four years with both television and digital mediums. Based in Mumbai, she reports on disputes across sectors including banking, corporates and finance. This also includes insolvency and bankruptcy cases and intellectual property rights (IPR) litigation. Her focus also comprises tracking capital markets and disputes relating to securities law. Previously, Priyanka worked with Informist Media for 2.5 years covering major insolvency and bankruptcy cases and corporate developments. She started her career in journalism with Business Television India (BTVi) where she reported on primary markets, banking, finance and insurance companies.
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Published: 08 May 2023, 10:28 PM IST
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