SpiceJet settles ₹60 crore dispute with aircraft lessor Aviator ML

The National Company Law Tribunal (NCLT) has allowed aircraft lessor Aviator ML 29641 Limited to withdraw its insolvency petition against SpiceJet following a last-minute settlement. SpiceJet reportedly admitted the debt and made an initial payment of $500,000 to resolve the dispute involving approximately ₹58.64 crore.

Despite the settlement, the NCLT imposed costs of ₹15 lakh on both parties, directing them to pay ₹7.5 lakh each to the Prime Minister’s National Relief Fund within seven days. The tribunal expressed dissatisfaction with the timing of the disclosure, noting that the settlement was presented just as final orders were to be pronounced. The NCLT emphasized that it is a tribunal for insolvency and resolution rather than a forum for private settlements.

Other lessors have opposed the agreement, alleging it is a bad-faith attempt by SpiceJet to block eight other insolvency petitions. These remaining claims exceed ₹500 crore. Consequently, the NCLT has de-reserved its orders in the other seven petitions and directed them to be placed before a regular coram for consideration. SpiceJet continues to face liquidity pressures and multiple legal challenges from other entities, including NGF Alpha and NVS Brokerage.