Archive · 6 Jun 2025
SpiceJet Faces Legal Hurdle in Insolvency Proceedings
SpiceJet, an airline, is facing legal trouble because some companies it owes money to are trying to make it go bankrupt.
These companies filed papers in court, but SpiceJet said the lawyer who filed the papers didn't have the correct permission to do so.
The court agreed, because the permission document had expired.
So, the court has stopped the process temporarily and wants the companies to get a new, valid document.
The next court date is set for July 3rd, and it will determine if the case can continue.
NCLT halts insolvency proceedings against SpiceJet due to a Power of Attorney validity issue.
Three Ireland-based lessors filed insolvency petitions over a Rs 77 crore default.
SpiceJet's counsel pointed out the PoA's expiry date of February 2025.
The NCLT ordered the lessors to submit a valid Power of Attorney.
The next hearing is scheduled for July 3.
- Who
- NCLT, SpiceJet, and three Ireland-based lessors (AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland).
- What
- NCLT proceedings halted due to validity issues regarding Power of Attorney.
- When
- June 2, 2025, the hearing was held. Next hearing scheduled for July 3, 2025.
- Where
- National Company Law Tribunal (NCLT).
- Why
- SpiceJet raised an issue about the validity of the Power of Attorney, leading the tribunal to halt proceedings.
Lessors' Perspective
SpiceJet's Perspective
Insolvency Proceedings
Lessors' Perspective
Lessors seek to recover dues through insolvency proceedings.
SpiceJet's Perspective
SpiceJet is defending against the insolvency petitions, raising legal issues.
- Airline
- SpiceJet
- Lessors Involved
- AWAS 36698 Ireland, AWAS 36694 Ireland, AWAS 36695 Ireland
- Default Amount
- Rs 77 crore
- Power of Attorney Expiry
- February 2025
- Next Hearing Date
- July 3, 2025