The National Company Law Tribunal (NCLT) has allowed aircraft lessor Aviator ML to withdraw its insolvency plea against SpiceJet after the two sides reached a settlement, providing relief to the cash-strapped airline in one of the insolvency cases it faces.
Tribunal Imposes Penalty
However, taking strong exception to the manner in which the proceedings were conducted, the tribunal imposed costs of ₹15 lakh on both parties. SpiceJet and Aviator ML have been directed to deposit ₹7.5 lakh each with the Prime Minister’s National Relief Fund within seven days, after informing the tribunal about the settlement only when the matter had reached the final-order stage.
The NCLT’s order means Aviator ML’s insolvency petition will not proceed. Seven other insolvency petitions filed against SpiceJet by aircraft lessors will now be heard afresh by the tribunal.
SpiceJet welcomed the order, calling it a positive step towards resolving its outstanding matters with creditors and lessors. “SpiceJet welcomes the order of the National Company Law Tribunal (NCLT), which has disposed of the petition filed by Aviator ML as withdrawn. The seven other claims will now be heard afresh in accordance with the due process,” the airline said.
“We view the order as a positive step towards resolving the outstanding matters and remain committed to working closely and constructively with our partners to find mutually acceptable solutions,” it added.
The settlement comes as SpiceJet continues to navigate financial and operational challenges, including disputes with aircraft lessors, outstanding liabilities and efforts to restore its fleet.
“We remain committed to working with all our stakeholders in a spirit of cooperation as we move forward,” SpiceJet said.
The withdrawal of Aviator ML’s plea removes one insolvency proceeding against the airline, but the seven remaining cases will now be re-heard, keeping pressure on SpiceJet as it works towards financial and operational recovery.