The National Company Law Tribunal issued a notice to SpiceJet on Monday on a petition filed by aircraft lessor Aircastle (Ireland) Ltd, which sought initiation of insolvency resolution proceedings against the budget carrier.

Advocates Ritesh Singh, Chinmoy Pradeep Sharma and Ajay Kumar appeared on behalf of Aircastle, whereas senior advocate Krishnendu Datta appeared on behalf of SpiceJet. The Bench heard both parties, after which it was agreed to hear the lessors’ plea. The Tribunal issued a notice to the airline seeking its reply. NCLT has scheduled the next hearing of the plea on May 17, allowing SpiceJet a little over a week to respond. 

No adverse ruling

In the Aircastle issue, notice was issued in normal course. There was no adverse ruling against SpiceJet. The court has recognised the fact that parties are under settlement discussions and that they could continue to pursue the same, said a SpiceJet Spokesperson in a statement.

Also read: SpiceJet to revive 25 grounded aircraft

Sources said the matter is for ₹40 crore of dues for four B737-800 aircraft. The airline has said the aircraft are not part of its fleet. Aircastle has sought the initiation of the insolvency process over the said unpaid dues. 

SpiceJet is also facing troubles from a plea filed by Credit Suisse in the Supreme Court. The latter has alleged contempt of court. The matter dates back to August 2022. SpiceJet and Credit Suisse had agreed to settle a payment dispute of $24 million. But, in April 2023, Credit Suisse moved SC, alleging that the airline had failed to pay $4.9 million, according to the terms of settlement. 

This comes even as the Ajay Singh-owned no-frills carrier converted its debt into equity. Carlyle Aviation now holds a 7.5 per cent stake in the airline after converting $100 million of outstanding dues into equity. Carlyle also acquired compulsorily convertible debentures in SpiceXpress, the airline’s cargo arm.

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