More Stories

Informist, Friday, Jun. 12, 2026

 

--NCLT rejects SpiceJet former employee's plea to admit IBC against airline

 

NEW DELHI – The Delhi bench of the National Company Law Tribunal Friday rejected former SpiceJet pilot Devesh Bbyan's plea to start insolvency proceedings against the airline. Bbyan has filed a claim for INR 17 million towards unpaid employment dues for March 2020 to August 2022. The bench of judicial member Mahendra Khandelwal and technical member Anu Jagmohan said Bbyan's plea stood "dismissed". A detailed order is awaited. 

 

In May, the tribunal had also rejected two former employees' pleas to initiate insolvency proceedings against the airline. Sameer Breja and Karan Gupta, who worked as captains in the airline, had alleged that SpiceJet had not paid them INR 12.17 million and INR 13.19 million, respectively. The tribunal had then said there was a pre-existing dispute between the parties in respect of the amount of employment dues. These disputes regarding employment dues cannot be adjudicated by the tribunal in the insolvency proceedings, it had said.

 

The tribunal has made a special bench for hearing insolvency cases against SpiceJet. There are around 16 insolvency petitions filed against the airline, however, no petition has been admitted by the tribunal till date. The earlier insolvency cases against the airline have been either rejected or settled by SpiceJet after paying the dues.

 

SpiceJet, which is facing several operational and financial challenges, had earlier requested the Supreme Court in an arbitration case to allow the airline to submit a title deed of an immovable property with the court's registry instead of depositing money or give the airline an extension of timeline. SpiceJet had said that if the request for title deed or extension is not accepted, the airline will have to close down. 

 

In a hearing in Delhi High Court, SpiceJet had said that it was facing a liquidity crunch currently as various flights to the Gulf countries had been cancelled due to the recent West Asia war. "We have suffered losses, have a liquidity issue...," the airline said in an application to the court. Even a lessor seeking enforcement of $8 million award had said that SpiceJet was on the verge of insolvency as there were many insolvency petitions filed against the airline.

 

At 1105 IST, the shares of SpiceJet Ltd. were up 5.0% at INR 12.09 on the BSE.  End

 

US$1 = INR 95.44

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

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.