NCLT Fines SpiceJet, Aircraft Lessor ₹15 Lakh Each Over Last-Minute Settlement In Insolvency Case
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…
The National Company Law Tribunal (NCLT) has fined both SpiceJet and aircraft lessor Aviator ML 29641 Ltd a penalty of ₹15 lakh each, for disclosing a settlement at the eleventh hour, after the insolvency proceedings had already been reserved for judgment. A special NCLT bench postponed its decision on insolvency petitions against the struggling airline and instructed the regular bench to review the matter on Monday.
The dispute arose after SpiceJet informed the tribunal on Monday that it had reached an agreement with Aviator ML, acknowledging its outstanding liability and making an initial payment of $500,000 under a settlement signed overnight. The tribunal expressed dissatisfaction, questioning why the settlement was not disclosed earlier, especially as the case had already been reserved for pronouncement.
The bench criticized the parties for bringing the development at the last moment, stating that valuable judicial time had been wasted preparing the order. Lawyers representing other creditors also objected, arguing that resolving one creditor's claim should not delay the seven other insolvency petitions that had already been heard.
The NCLT action comes as SpiceJet grapples with significant financial troubles, reporting a net loss of ₹1,138.15 crore in the April-December period of FY26, up from ₹266.8 crore in the same period a year earlier.
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