NCLT defers SpiceJet insolvency orders after last-minute settlement
The National Company Law Tribunal deferred SpiceJet's insolvency orders after a last-minute settlement with a lessor, criticizing the timing as wasteful of judicial resources.Summary
The National Company Law Tribunal (NCLT) postponed the pronouncement of insolvency orders against SpiceJet following a last-minute settlement between the airline and Aviator ML 29641 Limited, a aircraft lessor. The tribunal expressed strong disapproval of the parties' conduct, noting that the settlement was reached hours before the orders were scheduled, despite extensive arguments and preparation. The settlement involves SpiceJet acknowledging a default of Rs 58.64 crore and making an initial payment of $500,000. Other lessors, whose petitions were also listed for orders, objected to the deferment, arguing that a settlement with one creditor should not delay proceedings involving others. The NCLT deferred Aviator ML's petition to August 19 and seven other related petitions to August 20, citing the potential impact of the settlement on those cases. The tribunal emphasized that such settlements must be disclosed at an appropriate stage to avoid wasting judicial time.
(Source：Business Standard)