NCLT notice to SpiceJet in insolvency plea by lessors over Rs 77 crore default

The National Company Law Tribunal (NCLT) on April 18 issued notice to low-cost airline SpiceJet in three insolvency plea filed by three aircraft lessors, namely AWAS 36698 Ireland,  AWAS 36694 Ireland and AWAS 36695 Ireland, over a total default of Rs 77 crore.

Appearing for the lessors, senior advocate Pramod Nair argued that the plea has been filed based on the judgment of the High Court of United Kingdom and contract between the parties. Thus, Nair urged the tribunal to issue notice to SpiceJet and ask them to file a response to the plea.

Senior advocate Krishnendu Dutta, who appeared for the airline questioned the maintainability, arguing that the plea relies entirely on the judgment of a foreign court rather than on the contract between the parties. Dutta summited before the tribunal that an insolvency plea is maintainable only if it relies on the agreement between parties. He added that the mentioned lessors have also moved the high court for execution of the foreign decree, thus approaching multiple forums for the same dispute. He further argued that the lessors have not even filed a single invoice that SpiceJet has defaulted on.

The tribunal, in response, noted that such issues should be raised in a written response and issued notice to the airline. NCLT further directed the airline to file its response to the plea in two weeks and listed the case for hearing on May 30.