NCLT seeks SpiceJet's reply on Falgu Aviation Leasing's insolvency plea
This story was originally published at 13:44 IST on 24 October 2024
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--NCLT seeks SpiceJet's reply on Falgu Aviation Leasing's insolvency plea
--SpiceJet's aircraft lessor Falgu Aviation says airline owes $8.11-mln dues
--NCLT to hear Falgu Aviation's plea against SpiceJet on Nov 28
NEW DELHI – The Delhi bench of the National Company Law Tribunal Thursday sought a reply from SpiceJet Ltd. on its aircraft lessor Falgu Aviation Leasing Ltd.'s insolvency plea for dues of $8.11 million. The tribunal will hear Falgu Aviation's insolvency plea next on Nov. 28.
"This is a petition filed under section 9 of Insolvency and Bankruptcy Code, 2016. Heard learned counsel on behalf of operational creditor (Falgu Aviation). Advocate Krishnendu Datta (for SpiceJet) appears on the basis of advance notice and sought time to file reply to petition, including objection on maintainability. The operational creditor has also liberty to file rejoinder to corporate debtor (SpiceJet). List the matter on Nov. 28," said a Bench of judicial member Mahendra Khandelwal and technical member Sanjeev Ranjan.
The tribunal noted that there were two more insolvency petitions filed by Sabarmati Aviation Leasing Ltd. and JetAir 17 Ltd. arising out of the same issues against the airline. Appearing for SpiceJet, advocate Krishnendu Datta said his client was not served with copies of these petitions. The tribunal asked Sabarmati Aviation and JetAir 17 to serve the copy of their petitions to the airline, and listed those cases for hearing on Nov. 18.
In 2018, SpiceJet and Falgu Aviation had entered into an agreement to lease one Boeing 737-MAX8 aircraft. Under the agreement, SpiceJet was obligated to pay monthly lease rentals to Falgu Aviation. However, from 2019, it started defaulting on the payments.
Thereafter, an English court passed a decree and held SpiceJet liable for payment of the outstanding amount. Falgu Aviation moved the Delhi High Court to enforce the decree. In the high court, a settlement agreement was reached and SpiceJet was to pay the entire amount to Falgu Aviation, the lessor said. However, SpiceJet failed to pay the amount, after which the lessor moved the tribunal, the lessor said.
Advocate Datta contested Falgu Aviation's petition and said the petition was not maintainable. Datta said the amount was not an operational debt under Section 9 of the Insolvency and Bankruptcy Code, 2016, as it arose out of a settlement agreement.
At 1234 IST, shares of SpiceJet Ltd were up 0.5% at INR 57.98 on BSE. End
US$1 = INR 84.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Avishek Dutta
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