NCLT Fines SpiceJet, Aircraft Lessor ₹15 Lakh Each Over Last-Minute Settlement In Insolvency Case
· Free Press Journal
The National Company Law Tribunal (NCLT) has imposed a ₹15 lakh penalty each on SpiceJet and aircraft lessor Aviator ML 29641 Ltd for informing the tribunal about their settlement at the last moment, after the insolvency proceedings had already been reserved for judgment.
The special NCLT bench deferred its order on insolvency petitions against the financially stressed airline and directed the regular bench to hear the matter on Monday.
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12-Hour Delay & No Refreshments: Pune-Delhi SpiceJet Passengers Left StrandedNCLT criticises last-minute settlement
The dispute came to a head after SpiceJet informed the tribunal during Monday's hearing that it had reached an agreement with Aviator ML. The airline acknowledged its outstanding liability and said it had made an initial payment of $500,000 under a settlement agreement signed overnight.
The tribunal questioned why the settlement had not been disclosed earlier, particularly as the case had already been reserved for pronouncement. The bench said valuable judicial time had been spent preparing the order and criticised the parties for bringing the development to its attention at the eleventh hour.
The tribunal described the approach as inappropriate and said the special bench had allocated considerable time to hear the insolvency matters involving SpiceJet.
Lawyers representing other creditors also objected to the delay. They argued that resolving one creditor's claim should not hold up the seven other insolvency petitions that had already been heard.
One counsel criticised the strategy, arguing that SpiceJet should not be allowed to use a single settlement to delay the entire batch of cases.
SpiceJet faces mounting financial pressure
The NCLT action comes as SpiceJet continues to deal with significant financial challenges. The airline reported a net loss of ₹1,138.15 crore during the April-December period of FY26, sharply higher than the ₹266.8 crore loss recorded during the corresponding period a year earlier.
Revenue from operations stood at around ₹3,271.5 crore for the nine-month period ended December 31, representing a 14% decline from the previous year.