NCLT issues notice to debt-ridden airline

Business: The National Company Law Tribunal (NCLT) on Monday issued notice to debt-ridden airline SpiceJet on a plea filed by one of its operational creditors. A two-member NCLT bench of Mahendra Khandelwal and Sanjeev Thanjan directed SpiceJet to file its reply and listed the matter for further hearing on November 14. SpiceJet is already facing multiple insolvency petitions before the NCLT and NCLAT Appellate Tribunal from creditors such as Willis Lease, Aircastle Ireland Ltd, Wilmington and Celestial Aviation.

The latest application was filed by operational creditor Techjockey Infotech Pvt Ltd through Karanjawala & Co under Section 9 of the Insolvency and Bankruptcy Code. Techjockey Infotech said SpiceJet failed to pay about $1.2 billion for software services it had availed. Earlier in June, the NCLT had issued a notice to SpiceJet on a plea filed by Engine Lease Finance (ELF). Ireland-based ELF is the world’s leading independent engine finance and leasing company and has reported defaults of over $12 million (about Rs 100 crore). The NCLT rejected the arguments of Willis Lease Finance and Wilmington Trust. SpiceJet has settled the case with Celestial Aviation.