NCLT issues notice to SpiceJet over plea by IT vendor

  • Raymach Technologies claims it provided business-consulting and technical-support services worth 2.7 crore to the airline but hasn't been paid.

Krishna Yadav
Published30 Nov 2023, 04:30 PM IST
SpiceJet is facing numerous legal challenges, with four of its aircraft lessors having already filed cases with the NCLT (Photo: Bloomberg)
SpiceJet is facing numerous legal challenges, with four of its aircraft lessors having already filed cases with the NCLT (Photo: Bloomberg)

The National Company Law Tribunal (NCLT) issued a notice to the cash-strapped private airline SpiceJet on Thursday in an insolvency case initiated by Raymach Technologies Pvt Ltd, a business consultancy for the IT and aviation industries. Raymach Technologies claims it provided business-consulting and technical-support services worth 2.7 crore to the airline but hasn't been paid. The court deferred the case to January after calling for a response from SpiceJet.

Bharat Arora, representing Raymach, said the company had consistently provided technical support staff to SpiceJet over the past four years. He said invoices were regularly sent to the airline for the services rendered, which SpiceJet had not disputed. However, when Raymach initiated proceedings under the Insolvency and Bankruptcy Code (IBC), SpiceJet denied having availed of its services, he said. Arora presented various email exchanges between Raymach and SpiceJet, revealing that the airline had acknowledged the services provided.

The tribunal, however, asked Raymach's counsel to remove from the petition invoices from the covid period, as no application to initiate insolvency proceedings could be admitted for a default that took place during the pandemic.

In 2020 the government added Section 10A to the Insolvency and Bankruptcy Code (IBC), which prevented the filing of insolvency applications for defaults that occurred after March 25 that year. This restriction was initially for just six months but it could be extended up to a year, as notified by the authorities.

SpiceJet is facing numerous legal challenges, with four of its aircraft lessors – Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington and Celestial – having already filed cases with the NCLT to initiate insolvency proceedings due to payment defaults. In August, SpiceJet allotted over 48 million shares to nine aircraft lessors to clear outstanding dues amounting to 2.31 billion (about $28 million).

Media reports indicate that SpiceJet is seeking to raise about $100 million, with promoter Ajay Singh reportedly in talks with global credit funds.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:30 Nov 2023, 04:30 PM IST
Business NewsNewsIndiaNCLT issues notice to SpiceJet over plea by IT vendor

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    149.70
    07:18 PM | 1 NOV 2024
    1.05 (0.71%)

    Indian Oil Corporation share price

    145.00
    07:19 PM | 1 NOV 2024
    2.3 (1.61%)

    Tata Power share price

    445.20
    07:19 PM | 1 NOV 2024
    5.15 (1.17%)

    Bandhan Bank share price

    183.65
    07:10 PM | 1 NOV 2024
    1.4 (0.77%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Rainbow Childrens Medicare share price

    1,545.00
    06:59 PM | 1 NOV 2024
    -67.25 (-4.17%)

    ICICI Securities share price

    833.45
    06:59 PM | 1 NOV 2024
    -32.85 (-3.79%)

    Vijaya Diagnostic Centre share price

    966.70
    06:59 PM | 1 NOV 2024
    -30.35 (-3.04%)

    Narayana Hrudayalaya share price

    1,235.60
    06:59 PM | 1 NOV 2024
    -36.75 (-2.89%)
    More from Top Losers

    Brigade Enterprises share price

    1,244.80
    07:19 PM | 1 NOV 2024
    71.75 (6.12%)

    PCBL share price

    432.15
    07:17 PM | 1 NOV 2024
    21.35 (5.2%)

    Piramal Pharma share price

    281.85
    07:17 PM | 1 NOV 2024
    13.45 (5.01%)

    Jubilant Pharmova share price

    1,273.00
    06:59 PM | 1 NOV 2024
    60.65 (5%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      81,355.000.00
      Chennai
      81,361.000.00
      Delhi
      81,513.000.00
      Kolkata
      81,365.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.98/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts