Postponement of Lessor Willis’ Insolvency Petition Against SpiceJet until July 21st

In a recent development, the National Company Law Tribunal (NCLT) has postponed the insolvency plea filed by aircraft engine lessor, Willis Lease Finance Corporation, against SpiceJet. The NCLT has rescheduled the hearing for July 21, thereby granting both parties additional time to present their arguments and evidence.

Willis Lease initiated the insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, on April 12. According to the lessor, SpiceJet owes them a substantial sum of $6.87 million.

SpiceJet

During the hearing, the senior counsel representing SpiceJet raised concerns regarding the maintainability of the petition. The counsel argued that the earlier notice issued under Section 8 of the Insolvency and Bankruptcy Code could potentially serve as a basis for this particular petition.

Section 8 of the Insolvency and Bankruptcy Code specifies that “an operational creditor may, on the occurrence of a default, deliver a demand notice of unpaid operational debt or a copy of an invoice demanding payment of the amount involved.”

Given the complex nature of the case, the bench has requested Willis Lease’s senior counsel to satisfy them on whether the previous notice issued under Section 8 of the IBC can be applied to this specific petition.

This adjournment provides both parties with an opportunity to present their arguments in-depth and address the concerns raised by SpiceJet regarding the maintainability of the insolvency petition. The NCLT’s decision to reschedule the hearing demonstrates the importance of thoroughly examining the legal aspects involved to ensure a fair and just resolution.

The outcome of this case will have significant implications not only for SpiceJet and Willis Lease Finance Corporation but also for the broader aviation industry. Stakeholders will be closely monitoring the proceedings as they unfold on July 21, eagerly awaiting the tribunal’s decision.

Both companies will continue to navigate the legal proceedings, and the adjournment grants them additional time to gather and present necessary evidence and arguments. The rescheduled hearing on July 21 will be a crucial event that may shape the future course of action in this insolvency dispute between SpiceJet and Willis Lease Finance Corporation.

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