- An Indian court said on Wednesday it will rehear bankruptcy petitions filed by aircraft lessors against cash-strapped SpiceJet, after the airline reached a last-minute settlement with one lessor.
- The move means SpiceJet's existing management will remain in control of India's fourth-largest airline while the petitions are reconsidered.
- A special bench of the National Company Law Tribunal (NCLT) imposed a ₹915 lakh fine each on SpiceJet and aircraft lessor Aviator ML 29641 Ltd for wasting the court’s time.
- The timing of the disclosure angered the tribunal because the matter had already been reserved for pronouncement.
- The bench questioned why the development had not been communicated earlier and had repeatedly asked the parties whether there was any possibility of settlement.
SpiceJet has reached settlements with aircraft lessors, allowing it to maintain control as bankruptcy petitions are reconsidered. However, the National Company Law Tribunal (NCLT) imposed a ₹915 lakh fine on both SpiceJet and Aviator ML 29641 Ltd for wasting the court's time.13
The court expressed frustration over the timing of the settlement disclosure, which occurred on the day a ruling was expected. The tribunal had previously inquired about the possibility of a settlement, questioning why the information was not communicated sooner.
This development comes as SpiceJet navigates financial difficulties, with the airline's management remaining in control during the ongoing legal proceedings. The court's decision to reconsider the bankruptcy petitions follows the last-minute settlement with one lessor, indicating a potential path forward for the beleaguered airline.
“The timing of the disclosure angered the tribunal because the matter had already been reserved for pronouncement,” the bench noted, highlighting the procedural misstep that led to the fine.
As SpiceJet works to resolve its financial issues, the implications of this ruling and the settlements with lessors will be closely monitored by industry observers and stakeholders.
“The NCLT's special bench expressed frustration over the timing of SpiceJet's disclosure, which came just before a scheduled pronouncement. The bench had previously inquired about the possibility of a settlement, questioning why this development was not communicated sooner.”
livemint.com
