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Informist, Tuesday, Nov. 19, 2024

 

NEW DELHI – Shannon Engine Support Ltd Tuesday withdrew its insolvency petition against SpiceJet Ltd in the Delhi bench of the National Company Law Tribunal after a settlement between the parties. SpiceJet's engine lessor Shannon Engine had claimed an unpaid debt of INR 303.27 million from the airline. "....Liberty is granted to the applicant to withdraw the company petition and the same is dismissed as withdrawn," said the tribunal.

 

In July, Shannon Engine had said SpiceJet had not paid the rental for leased engines. The lessor had said that it had given a demand notice to SpiceJet under section 8 of the Insolvency and Bankruptcy Code, 2016, in December. Appearing for the airline, advocate Krishnendu Datta had said the lessor had not filed previous demand notices issued by it and the replies from the airline. 

 

Further, in another case against SpiceJet, its lessor Engine Lease Finance B.V. said the parties were trying to settle the matter. The tribunal pulled up the counsel of Engine Lease Finance and said this "proceeding has been made a tool for settlement". The tribunal noted that the parties had sought adjournment last time too, for the same reason. The tribunal said that in the next hearing on Jan. 17, parties either settle or the case would be proceeded as per law.

 

In 2017, an agreement was signed between the parties, with Engine Lease Finance leasing its engines to SpiceJet. However, the airline defaulted on its payment from Apr 14, 2021. The lessor had said that the total debt was $12.97 mln and interest amounted to $3.75 mln. It said it had given a demand notice to the airline under the Insolvency and Bankruptcy Code, 2016.  End

 

US$1 = INR 84.40

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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