NCLT issues notice to SpiceJet in another insolvency plea over $5 million default

The National Company Law Tribunal (NCLT) on Monday issued notice to low cost airline SpiceJet in an insolvency plea filed by its lessor Sabarmati Aviation over a default of $5 million. .Senior Advocate Krishnendu Dutta, who appeared for SpiceJet, told the NCLT that the airline would file a response to the plea and it did not have an objection to the notice being issued. However, the NCLT chose not to issue notice in another insolvency plea filed by a lessor called JetAir 17 Limited, as SpiceJet contested its maintainability. Dutta contended that SpiceJet had not entered into a lease agreement with JetAir 17, but with an entity called Wilmington Trust, and there were no documents showing how JetAir 17 has inherited the interest from Wilmington. Advocate Kunal Tandon, who appeared for JetAir 17, told the NCLT that SpiceJet owes them over $27 million. He contended that Wilmington had transferred its interest in the lease to JetAir 17, as a result of which they are empowered to file an insolvency plea against the airline. A coram of Judicial Member Mahendra Khandelwal and Technical Member Dr Sanjeev Ranjan, however, directed JetAir 17 to file the documents showing transfer of interest in the lease from Wilmington and adjourned the plea to December 3. .Tandon was briefed by law firm Wadia Ghandy through Advocates Pranaya Goyal, Marylou Bilawala, Chiranjivi Sharma, Sharleen Lobo, Apoorva Kaushik, Vasu Gupta, Saakshi Malpekar, Uday Mathur and Nehal Gupta.Dutta was briefed by law firm Dentons Link Legal through its senior partner Sanjay Gupta..The plea filed by Sabarmati Aviation is the third case in which NCLT has issued notice to SpiceJet since October this year. The airline is facing nearly 10 insolvency petitions in NCLT Delhi..On October 24, NCLT issued SpiceJet in an insolvency plea filed by its aircraft lessor Falgu Aviation Leasing Limited over a default of $8.1 million or ₹68 crore.On October 14, Aviator ML 29641 Limited moved the NCLT against SpiceJet over a default of ₹58.64 crore..In September, the Delhi High Court upheld an order directing SpiceJet to ground three of its engines for defaulting on payment to French engines lessors.A Bench of Justices Rajiv Shakdher and Amit Bansal refused to interfere with single-judge's order directing SpiceJet to ground the engines.The single-judge had passed an order on August 14 directing SpiceJet to ground three engines leased from two French lessors after the airline defaulted on rental lease payments..Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.