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NCLT dismisses Wilmington Trust’s insolvency plea against SpiceJet

The National Company Law Tribunal (NCLT) has dismissed an insolvency plea filed by Wilmington Trust SP Services against the low-cost carrier.

“…lacks merit, is not maintainable and therefore stands dismissed,” the bench of NCLT, which comprises of members Mahendra Khandelwal and Rahul Prasad Bhatnagar, said.

Earlier in December, the NCLT dismissed an insolvency petition by aircraft lessor Willis Lease Finance Corporation which is claiming dues. A two-member Delhi-based NCLT bench rejected the plea moved by US-based Willis Lease Finance Corporation after SpiceJet questioned the maintainability of the petition.

SpiceJet opposed the plea contending that Willis Lease Finance Corp has withdrawn its insolvency plea for the same dispute in March 2023 and has approached again with a new plea.

During a hearing in July this year, the NCLT bench wanted to know from Willis Lease Finance Corp, as to how it filed a fresh petition again for a similar cause of action within a few months, without even sending a notice to SpiceJet as per the provisions of the Insolvency and Bankruptcy Code, 2016.

Besides Willis Lease, SpiceJet is facing insolvency pleas filed by three other aircraft lessors — Aircastle Ireland Ltd, Wilmington, and Celestial Aviation.

During a hearing in September, the NCLT suggested settling with its lessors, which have filed a plea to initiate insolvency proceedings against it.

In August, SpiceJet allotted over 48 million shares to nine aircraft lessors to clear its dues.

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