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Informist, Wednesday, Aug. 19, 2026

 

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--NCLT allows Aviator ML to withdraw insolvency proceedings against SpiceJet 
--NCLT fines Aviator ML, SpiceJet for settling IBC case ahead of final order 
--NCLT: To OK IBC plea withdrawal only if SpiceJet, Aviator ML pay fine 
--NCLT: Rest of 7 IBC cases against SpiceJet will be heard again 
--NCLT: SpiceJet, Aviator ML settling IBC just before order akin to 'fraud' 
--NCLT: Not happy with SpiceJet, Aviator ML settling IBC case before order

 

NEW DELHI – The Delhi bench of National Company Law Tribunal Wednesday saved SpiceJet Ltd. from going into insolvency and gave Aviator ML 29641 Ltd. liberty to withdraw its insolvency petition against the airline, which will only be approved if both the parties pay a fine of INR 750,000 each for settling the case at the last moment. However, the tribunal called out SpiceJet and Aviator ML for playing a "fraud" with the bench to settle the insolvency case on the verdict day. 

 

Since one of the members of the tribunal, who had heard the remaining seven cases against SpiceJet, was retiring, the Bench of judicial member Mahendra Khandelwal and technical member Anu Jagmohan dereserved their judgments in those cases. These cases, which were pending for two years and were reserved after extensive arguments, will now be heard again. The tribunal reasoned that Aviator ML's case had a bearing on the remaining cases and due to the order passed in that case, it would not be able to pronounce voluminous orders in the remaining seven insolvency cases on Wednesday, noting that it was not feasible. This gives SpiceJet more time to settle the remaining cases with all the lessors.

 

The tribunal refused to take cognizance of the settlement agreement between SpiceJet and Aviator ML as it was filed at the last moment. The tribunal observed that SpiceJet had filed numerous settlement agreements before courts and failed to honour them. This is not a tribunal for settlement, it is an insolvency and bankruptcy tribunal, said the Bench, adding that it will allow the withdrawal of insolvency proceedings but not note down the settlement pact between the parties.

 

The tribunal said that it was not happy with the conduct of both the parties in the insolvency case. The attitude of SpiceJet in the insolvency case was not appreciable, said the tribunal. It called out SpiceJet for choosing only one insolvency case to settle and repeatedly questioned the airline on other remaining cases. Even in the last hearing, the tribunal said, "How many more (insolvency cases) are you going to settle? On the last day of hearing, nobody said we will settle. We wasted so much time. Please tell us what else is being settled. When we put up (the case) for pronouncement, then you say it is settled...We will have to put a heavy cost on these types of things. You are saying members are sitting idle? You had a lot of time to settle it. Either tell everything is settled. We can close everything if you say you are settling with everyone. It is a mockery of the entire system," said the tribunal.  

 

On Monday, the tribunal came down heavily on SpiceJet for settling the case with its lessor on the day when the tribunal was going to pronounce its verdict on Aviator ML's insolvency petition for unpaid dues of INR 586.45 million. The tribunal said that SpiceJet was making a mockery of the entire system and was playing wrong tactics in its insolvency case. 

 

SpiceJet spokesperson said that the airline viewed the tribunal's order as a positive step towards resolving the outstanding matters and remained committed to working closely and constructively with its partners to find mutually acceptable solutions. SpiceJet has been through a challenging period and was focused on rebuilding the airline, strengthening its operations and restoring its fleet, said the spokesperson. The airline remained committed to working with all its stakeholders in a spirit of cooperation as it moves forward, it said.

 

In 2010, SpiceJet entered into an aircraft lease agreement with MCAP Europe Ltd. regarding one Boeing model 737-800 aircraft. In 2017, the aircraft was sold by MCAP Europe to Aviator ML. Consequently, the original lease agreement was modified on the same terms and conditions. Aviator ML said its claim relates to the lease rental of aircraft. It said that the Section 8 notice under the Insolvency and Bankruptcy Code, 2016, was sent to SpiceJet.  

 

Other lessors such as Awas 36698 Ireland Ltd., its related companies, Falgu Aviation Leasing Ltd., Sabarmati Aviation Leasing Ltd., JetAir 17 Ltd., Alterna Aircraft VB Ltd., had also moved the tribunal, whose arguments were heard extensively for two years by a special bench constituted for hearing cases only against SpiceJet. These will now be heard again. Apart from these, NGF Alpha Ltd., NGF Genesis Ltd., NGF Charlie Ltd., NVS Brokerage Pvt. Ltd.'s insolvency pleas against the airline are also pending in the tribunal.

 

At 1209 IST, the shares of SpiceJet Ltd. were down 2.6% at INR 10.90 on the BSE.  End

 

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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