NCLT defers hearing in insolvency pleas against SpiceJet to August 18

economictimes.indiatimes.com:

National Company Law Tribunal Thursday asked Spicejet to satisfy why a notice in a petition filed by aircraft lessor Aircastle (Ireland) Limited should not be served to the airline. The counsel from Aircastle (Ireland) Ltd placed three judgments on record pointing that the same operational creditor could file separate petitions if the invoices were over Rs 1 crore threshold prescribed for insolvency cases. At the earlier hearing, the tribunal had asked the lessor to satisfy if the same operational creditor could file multiple petitions.

The lessor’s counsel stated that “nothing in the Code stops an operational creditor from filing separate petitions” as long as invoices were above the threshold. While the tribunal noted that a notice could be issued in the matter, the senior counsel for the airline asked for a day's time to study the judgments. The matter is listed for August 18, along with a petition filed by yet another lessor Wilmington Trust SP Services (Dublin) Ltd.

Spicejet has been arguing against the maintainability of Wilmington’s petition claiming that it is a subsidiary of Aircastle (Ireland) Ltd. Spicejet had filed a petition questioning the maintainability of the first application filed by Aircastle (Ireland) Ltd. Spicejet had listed two defaults relating to the validity of the power of attorney and affidavit, further stating that the airline was protected as the default fell during the Covid period, where the law offers protection under Section 10A of the Insolvency and Bankruptcy Code, 2016.