NCLT questions maintainability of Wills Lease Finance's insolvency plea against SpiceJet

The National Company Law Tribunal (NCLT) on July 4 questioned the maintainability of the insolvency plea filed by aircraft lessor Will Lease Finance Corporation against low-cost airline SpiceJet, on the ground that Willis had already filed and withdrawn a petition against SpiceJet for the same dispute in March 2023.

Appearing for SpiceJet, senior advocate Krishnendu Dutta argued that 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. He questioned as to how Willis could have filed a second plea for the same cause of action in a matter of months.

Senior Counsel Virender Ganda, who appeared for Willis, argued that they had obtained the court's permission to withdraw and refile the insolvency plea and hence it is maintainable. He further argued that SpiceJet owed Wills
$6.87 million and they had to therefore file an insolvency plea.

The tribunal however 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 Insolvency and Bankruptcy Code, 2016. The tribunal also noted that while NCLT had granted Willis permission to withdraw the previous insolvency plea, they had not explicitly granted permission to refile it. Thus, the tribunal opined that the case would require detailed consideration.