New Delhi, Sep 23 (IANS) The National Company Law Tribunal (NCLT) on Monday sought the response of low-cost carrier SpiceJet on a plea by Techjockey Infotech Pvt Ltd, one of its operational creditors, seeking initiation of corporate insolvency resolution proceedings against the debt-ridden airline.
A bench comprising Judicial Member Mahendra Khandelwal and Technical Member Dr Sanjeev Tanjan issued notice on a petition filed against SpiceJet under Section 9 of the Insolvency and Bankruptcy Code, 2016.
In its application, software solutions startup Techjockey Infotech Private Ltd sought the initiation of corporate insolvency resolution proceedings against the airline on account of an alleged default of around Rs 1.18 crore, stemming from a 2021 agreement wherein SpiceJet acquired cloud services.
The plea, filed through advocates Vishal Ganda and Varun Kumar for Karanjawala & Company, added that the said debt has, in fact, been acknowledged by the corporate debtor and yet there has been no compliance.
The NCLT has admitted the case for consideration and issued a notice to SpiceJet. The case is scheduled to be heard on November 14.
This case adds to several insolvency cases against SpiceJet for unpaid dues to various vendors and aircraft lessors. The pleas from Aircastle, AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 remain pending, along with Shannon Engine Support Ltd and Engine Lease Finance B.V.
Last week, the Supreme Court upheld the Delhi High Court’s directive requiring SpiceJet to ground and return three aircraft engines leased from French companies due to non-payment of dues, while dismissing the airline’s appeal.
A division bench of the Delhi High Court had upheld a single-judge bench’s order asking SpiceJet to ground three engines by February 16, apart from taking steps to ensure that the engines are re-delivered to lessors within 15 days.
SpiceJet had moved an appeal before the division bench and prayed for an urgent hearing against the decision of the single-judge bench of Justice Manmeet Singh Arora. In his judgment, Justice Arora observed: “The defendant (SpiceJet) is a defaulter and has no legal and contractual right to continue the use of the engines. The inability of the defendant to pay the admitted outstanding dues is writ large on the face of the record and in fact, permitting the defendant to continue the use of the engines without payment would only cause financial distress to the plaintiff (lessors).”
The airline had said in a statement that it is currently in discussions with the aircraft lessor to reach an amicable settlement. “It is important to note that two of the three engines in question are already grounded, and our operations remain completely normal and unaffected. We remain committed to ensuring seamless operations,” the airline added.
Meanwhile, SpiceJet hit a new low with its market share shrinking by 80 bps to 2.3 per cent (month-on-month) in August, largely due to financial woes and increased grounding, carrying just 3.01 lakh domestic passengers. Also, embattled SpiceJet’s board has approved the issuance and allotment of 48.70 crore equity shares to qualified institutional buyers at Rs 61.60 per share to raise Rs 3,000 crore.
–IANS
pds/na/vd
