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Insolvency plea: Willis should have sent fresh insolvency notice to SpiceJet, NCLT observes

The tribunal asked ow a fresh insolvency plea could be filed for the same cause of action, without first sending a notice to SpiceJet under the provisions of the Insolvency Code. Wills withdrew its earlier insolvency plea against the airline in March 2023 due to some technical defects

August 08, 2023 / 17:37 IST
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SpiceJet
There are a total of five insolvency pleas filed by lessors against SpiceJet.

The National Company Law Tribunal (NCLT) on August 8 orally observed that Willis Lease Finance Corporation, which has filed an insolvency plea against low-cost airline SpiceJet, should have sent a fresh notice to the airline after it withdrew its previous plea.

Willis had previously initiated an insolvency plea against SpiceJet for the same cause of action. However, it withdrew the plea owing to some technical defects in March 2023.

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The tribunal questioned how a fresh insolvency plea could be filed for the same cause of action, without first sending a notice to SpiceJet under the provisions of the Insolvency and Bankruptcy Code, 2016. It also questioned how a new plea could be initiated for the same cause of action, without obtaining the court's permission to do so.

Senior Advocate Virender Ganda, who appeared for Willis, argued that a fresh notice was required to be sent only when the new insolvency pela introduces new invoices not contemplated in the previous notice. However, when the new insolvency plea is a mere re-filing, a notice need not be sent.