The National Company Law Tribunal (NCLT) has issued a notice to SpiceJet due to a $5 million insolvency plea from Sabarmati Aviation, marking the airline’s third such notice in recent months. SpiceJet, dealing with nearly 10 insolvency cases, faces mounting financial difficulties, including claims from JetAir 17 Limited for over $27 million. The next hearing is set for December 3.
New Delhi: The National Company Law Tribunal (NCLT) issued a notice to low-cost carrier SpiceJet on Monday in an insolvency plea filed by lessor Sabarmati Aviation, alleging a default of $5 million. The airline, represented by Senior Advocate Krishnendu Dutta, assured the tribunal that it would file a response, raising no objection to the notice.
However, the NCLT refrained from issuing a notice in a separate plea by JetAir 17 Limited, as SpiceJet contested its legitimacy. Dutta argued that JetAir 17 lacked evidence of inheriting interest from Wilmington Trust, the original leaseholder. Advocate Kunal Tandon, representing JetAir 17, claimed SpiceJet owes over $27 million, adding that Wilmington’s interest had been transferred to JetAir 17. The tribunal directed JetAir 17 to submit documents proving this transfer and scheduled the matter for December 3.
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The pleas highlight mounting financial challenges for SpiceJet, which is grappling with nearly 10 insolvency cases in NCLT Delhi.
Sabarmati Aviation’s petition marks the third insolvency notice issued to SpiceJet by the NCLT in recent months.
- On October 24, the tribunal admitted a plea by Falgu Aviation Leasing Limited, alleging an $8.1 million default.
- On October 14, Aviator ML 29641 Limited filed for insolvency against SpiceJet, citing a ₹58.64 crore default.
- Additionally, the airline faces legal setbacks regarding leased engines. In September, the Delhi High Court upheld an order grounding three of SpiceJet’s engines after defaults on payments to French lessors.
Sabarmati Aviation’s plea was filed by Senior Advocate Krishnendu Dutta, briefed by Dentons Link Legal. JetAir 17 was represented by Advocate Kunal Tandon, with support from Wadia Ghandy & Co., including Advocates Pranaya Goyal, Marylou Bilawala, and others.
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SpiceJet, once a significant player in India’s aviation sector, is under immense financial strain. As it battles insolvency claims and lease payment defaults, the airline’s ability to navigate these legal and financial hurdles will determine its future in a competitive market.
The next hearing in the JetAir 17 case is scheduled for December 3, while the NCLT continues to evaluate SpiceJet’s response to the growing insolvency claims.
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