Insolvency Proceedings
Former SpiceJet employees file insolvency plea against airline in NCLT
This story was originally published at 13:15 IST on 4 February 2025
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NEW DELHI – Two former employees of SpiceJet Ltd, who worked as captains in the airline, Tuesday moved the Delhi bench of the National Company Law Tribunal to initiate insolvency proceedings against the airline. Employees Sameer Breja and Karan Gupta have alleged that SpiceJet has not paid them INR 12.17 million and INR 13.19 million, respectively.
SpiceJet has committed default in paying the employment dues, including arrears of salary, deferred payment full and final settlement, allowances, unpaid overtime and other dues. However, the tribunal said that it was not a forum for deciding the issue of employment dues. This is neither a labour court nor a court for writ jurisdiction, said the tribunal.
The tribunal said the parties cannot bring employer-employee relationship disputes in tribunal. "We have to be satisfied if there is an operational debt," said the tribunal. "This is not a labour court for settlement of your wages," the tribunal added.
The counsel for SpiceJet said that a copy of the insolvency petition was not given to them. Most of the amount which was claimed by the petitioners was barred by limitation, said the airline. The tribunal observed the petitioners have filed the petition so that a notice is issued to the airline and there is some pressure on SpiceJet to pay the amount.
Without issuing notice in the plea, the tribunal asked the petitioners to show some cases where an insolvency petition can be filed where the opposing party has contested the default in the demand notice by saying it belonged to Section 10A of the Insolvency and Bankruptcy Code, 2016. The tribunal will hear the case next on Mar. 7.
At 1203 IST, shares of SpiceJet Ltd. were down 0.3% at INR 49.58 on the BSE.
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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