Now Reading: NCLT slaps Rs 15 lakh cost on SpiceJet for last-minute lessor settlement
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NCLT slaps Rs 15 lakh cost on SpiceJet for last-minute lessor settlement
NCLT slaps Rs 15 lakh cost on SpiceJet for last-minute lessor settlement
The National Company Law Tribunal (NCLT) on Wednesday imposed costs of Rs 15 lakh on SpiceJet and aircraft lessor Aviator ML 29641 Limited for settling an insolvency petition at a belated stage,…
The National Company Law Tribunal (NCLT) on Wednesday imposed costs of Rs 15 lakh on SpiceJet and aircraft lessor Aviator ML 29641 Limited for settling an insolvency petition at a belated stage, wasting judicial time. Each party must pay Rs 7.5 lakh to the Prime Minister's National Relief Fund within seven days, and the withdrawal order will take effect only after proof of payment is submitted.
The tribunal criticised the parties for waiting until the day of the ruling on August 17 to disclose the settlement, with one judge remarking, "It makes a mockery of the entire thing." The NCLT also de-reserved its orders in seven other insolvency petitions against SpiceJet, directing them to be placed before a regular coram for fresh hearing. The court refused to record the settlement terms or grant liberty to revive the petition if terms are breached.
SpiceJet welcomed the order, calling it a positive development. The airline's shares fell 4% amid heavy volumes on Wednesday. The tribunal had earlier deferred the pronouncement of judgments on eight bankruptcy petitions after SpiceJet reached a last-minute settlement with Aviator ML over an alleged default of Rs 58.64 crore.
Indian Opinion Analysis
The pro-government framing in SOURCE-1 (The Hindu Business Line) highlights the NCLT's rebuke and wasted judicial time, while SOURCE-3 (Bar & Bench) adds the Rs 15 lakh cost and the court's refusal to record settlement terms, emphasising procedural discipline. The neutral-report in SOURCE-2 (The Hindu Business Line) frames the outcome as "relief" for SpiceJet, giving the airline temporary breathing room. NDTV Profit (SOURCE-4) adds a market reaction, shares tumbling 4%, and the airline's welcome of the order. The measured middle-ground read: the NCLT punished the conduct but did not admit the bankruptcy petition, giving SpiceJet a procedural reprieve, not a clean chit. The next step: SpiceJet must pay Rs 7.5 lakh within 7 days, and seven other lessor petitions await fresh hearing before a new bench.
Coverage: 4 sources, 1 pro-government, 2 neutral, 1 sensationalist
Sources (4): thehindubusinessline.com (sensationalist), thehindubusinessline.com (2) (neutral report), barandbench.com (pro government), ndtvprofit.com (neutral report)
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
