NCLT Raises Questions Regarding Legitimacy of Insolvency Petition Against SpiceJet
In a recent development, the National Company Law Tribunal (NCLT) has raised doubts regarding the legitimacy of the insolvency petition filed against SpiceJet by one of its operational creditors, Willis Lease Finance Corporation. A two-member bench of the NCLT, comprising Members Mahendra Khandelwal and Rahul Prasad Bhatnagar, questioned the maintainability of the plea, noting that Willis Lease Finance Corporation had previously withdrawn a similar insolvency plea in March 2023 and has now approached the tribunal again with a new plea.
NCLT
The NCLT bench expressed curiosity about the aircraft lessor’s decision to file a petition for the same cause of action within such a short span of time. SpiceJet is facing a dispute with Willis Lease Finance Corporation, a US-based firm specializing in leasing commercial aircraft engines to airlines, over a claim of USD 6.87 million owed by the airline.
The NCLT has scheduled the next hearing for July 21, during which it will further scrutinize the plea filed by Willis Lease Finance Corporation. The company’s counsel argued that they had withdrawn the previous petition with the court’s permission and subsequently refiled it, justifying its maintainability.
It is worth mentioning that SpiceJet is currently facing additional insolvency pleas before the NCLT. Aircastle and Wilmington, both aircraft lessors, have also filed insolvency petitions against the airline. The NCLT will assess the various pleas against SpiceJet during the proceedings and decide on the course of action to be taken.
As the legal battle unfolds, stakeholders and industry observers eagerly await the NCLT’s decision on the maintainability of the insolvency plea filed by Willis Lease Finance Corporation. The outcome of this case could have implications not only for SpiceJet but also for the broader landscape of airline operations and creditor rights within the Indian aviation sector.
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