NCLT asks SpiceJet to file reply to Aircastle's petition in 15 days

National Company Law Tribunal (NCLT) Tuesday directed carrier SpiceJet to submit its reply within 15 days to Aircastle (Ireland's) Limited insolvency petition.

The tribunal will now examine if the power of attorney holder can represent an operational creditor in a corporate insolvency resolution process (CIRP) petition. SpiceJet's counsel had earlier questioned the maintainability of the petition, reasoning that the petition was filed by the power of attorney holder on behalf of the operational creditor which is not permissible as per the law. The counsel for SpiceJet argued that Aircastle, the lessor, had filed another petition against SpiceJet, and multiple petitions against the same corporate debtor are not allowed under the Insolvency and Bankruptcy Code, 2016.

Aircastle's counsel contended that the power of attorney granted to the petitioner had been backed by a board resolution passed by Aircastle and therefore is maintainable under IBC.

Regarding two petitions filed by Aircastle, the lessor's counsel argued that both petitions concerned two different debts by SpiceJet. Each petition related to the default of around ₹50 crore by SpiceJet, towards the rental charges for two Boeing aircraft.

www.economictimes.indiatimes.com dt. 08-05-2024