NCLT asks SpiceJet to reply to insolvency plea in 15 days

8 May 2024 , 01:11 PM

The carrier SpiceJet was given a deadline of 15 days by the National Company Law Tribunal (NCLT) to respond to Aircastle (Ireland) Limited’s insolvency petition.

The power of attorney holder’s ability to represent an operating creditor in a corporate insolvency resolution procedure (CIRP) petition will now be examined by the tribunal.

SpiceJet’s legal representative has previously questioned the petition’s maintainability, arguing that it was submitted by the power of attorney holder on behalf of the operational creditor, which is against the law.

The legal representative for SpiceJet contended that Aircastle, the lessor, had submitted an additional petition against the airline, and that the Insolvency and Bankruptcy Code, 2016 prohibits the filing of multiple petitions against the same corporate debtor.

Aircastle’s attorney argued that the petitioner’s power of attorney was maintainable under IBC since it was supported by a board resolution that Aircastle had enacted.

The lessor’s attorney contended that two petitions submitted by Aircastle pertained to two distinct obligations incurred by SpiceJet. Each petition concerned SpiceJet’s approximately ₹50 crore debt pertaining to unpaid leasing fees for two Boeing aircraft.

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