2 weeks ago
NCLT Fines SpiceJet, Aviator ML Over Late Settlement Disclosure
A court was deciding whether SpiceJet should face an insolvency case filed by Aviator ML.
SpiceJet and Aviator ML reached a settlement and told the court about it at the last moment.
The court said this wasted time because it had already prepared to announce its decision.
It fined both companies ₹15 lakh.
Aviator ML’s case was then withdrawn.
SpiceJet made an initial payment of $500,000 as part of the settlement.
Seven other creditors still have cases against SpiceJet, and those cases will be heard again.
SpiceJet says the settlement is a positive step, but it is still reporting large losses.
The NCLT fined SpiceJet and Aviator ML ₹15 lakh each for disclosing their settlement when the order was due.
Aviator ML was allowed to withdraw its insolvency plea against SpiceJet after the airline admitted the debt and paid $500,000 initially.
The tribunal directed each party to deposit ₹7.5 lakh with the Prime Minister’s National Relief Fund within seven days.
Seven other insolvency petitions against SpiceJet will be heard afresh after the tribunal deferred its order.
SpiceJet reported a ₹1,138.15 crore April-December FY26 net loss, compared with ₹266.8 crore a year earlier.
- Who
- The National Company Law Tribunal, SpiceJet, aircraft lessor Aviator ML 29641 Ltd, and other creditors.
- What
- The NCLT fined SpiceJet and Aviator ML ₹15 lakh each, allowed Aviator ML to withdraw its insolvency plea, and ordered the remaining cases to be reheard.
- Where
- Before the National Company Law Tribunal.
- When
- The penalty was imposed on Wednesday after the settlement was disclosed during a Monday hearing.
- Why
- The tribunal said the settlement was disclosed only when the matter had reached the final-order stage, wasting judicial time and delaying proceedings.
NCLT and Other Creditors
SpiceJet and Aviator ML
Late settlement disclosure
NCLT and Other Creditors
The tribunal said informing it of the settlement on the scheduled order day wasted precious judicial time and called the approach a “wrong tactic.”
SpiceJet and Aviator ML
SpiceJet and Aviator ML informed the tribunal that they had reached an overnight settlement, with SpiceJet admitting the debt and making an initial payment.
Effect on remaining petitions
NCLT and Other Creditors
Other creditors argued that settling one claim should not delay the seven other petitions that had already been heard and reserved for orders.
SpiceJet and Aviator ML
SpiceJet welcomed Aviator ML’s withdrawn petition and said the remaining claims would be heard afresh through due process.
Impact of the settlement
NCLT and Other Creditors
The tribunal’s process leaves seven other insolvency cases unresolved, keeping proceedings against SpiceJet active.
SpiceJet and Aviator ML
SpiceJet described the withdrawal as a positive step toward resolving outstanding matters with creditors and lessors.
Key facts
- Fine
- ₹15 lakh each for SpiceJet and Aviator ML
- Relief Fund deposit
- Each party must deposit ₹7.5 lakh with the Prime Minister’s National Relief Fund within seven days
- Settlement payment
- SpiceJet made an initial payment of $500,000
- Aviator ML petition
- Allowed to be withdrawn and will not proceed
- Remaining insolvency petitions
- Seven cases against SpiceJet will be heard afresh
- April-December FY26 net loss
- ₹1,138.15 crore, compared with ₹266.8 crore a year earlier
- Revenue from operations
- ₹3,271.5 crore, down 14% year over year for the period ending December 31
Quotes
SpiceJet CEO
Chief executive officer of SpiceJet
“SpiceJet welcomes the order of the National Company Law Tribunal (NCLT), which has disposed of the petition filed by Aviator ML as withdrawn. The seven other claims will now be heard afresh in accordance with the due process.”
financialexpress.com
Sources
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