NCLT Questions Maintainability Of Aircastle’s Another Insolvency Petition Against SpiceJet

The NCLT has recently declined the petitioner’s request to issue a notice to Spicejet and instead scheduled the new petition, which deals with a different case of default, on the same day as the previous one.

Aircastle’s counsel stated this information to the court. Meanwhile, the NCLT bench questioned whether it is appropriate to list two petitions by the same operational creditor against the same corporate debtor. The petitioner was requested to provide a satisfactory explanation to the court.

Recently, Aircastle (Ireland), an aircraft lessor, filed a second insolvency plea, which raised concerns about its maintainability, as per the National Company Law Tribunal. The court listed the matter on July 17 along with the previous petition filed by the lessor. The NCLT bench questioned the petitioner whether it is appropriate to list two petitions by the same operational creditor against the same corporate debtor.

Despite the petitioner’s request for a notice to be issued to Spicejet, the court declined and scheduled the new petition on the same day as the earlier one. Aircastle’s counsel clarified that the new petition pertains to a different case of default by Spicejet.

Aircastle (Ireland) submitted a new application under Section 9 of the Insolvency and Bankruptcy Code, 2016 to begin a corporate insolvency resolution process against Spicejet.

In the previous application, Spicejet challenged the maintainability of the petition.

The airline’s senior counsel listed two defaults related to the validity of the power of attorney and affidavit. The senior counsel also cited Spicejet’s protection under Section 10A of IBC, 2016, which shields it from defaults during the period March 25, 2020, to March 24, 2021.

Recently, Wilmington Trust SP Services (Dublin) Ltd, an aircraft lessor, initiated CIRP against Spicejet, becoming the third lessor to do so. The NCLT postponed the case until July 16.

The insolvency plea by Willis Lease Finance Corporation, an engine leasing company, is scheduled for July 4th.

Earlier, Go First, an airline company, voluntarily declared itself insolvent, which the NCLT accepted on May 10th.