What happened: SpiceJet insolvency case disrupted after late settlement
A last-minute settlement between SpiceJet and aircraft lessor Aviator ML 29641 Ltd. affected the insolvency proceedings before the National Company Law Tribunal (NCLT). The NCLT permitted Aviator ML 29641 Ltd. to withdraw its insolvency petition against SpiceJet, while imposing costs and strict withdrawal conditions.
NCLT’s cost order and withdrawal conditions
The NCLT imposed a time-bound costs direction and tied withdrawal effectiveness to proof of compliance.
Total costs were fixed at ₹15 lakh, with costs set “on both parties.”₹7.5 lakh was to be paid by Aviator ML 29641 Ltd.₹7.5 lakh was to be paid by SpiceJet.Both payments had to be made to the Prime Minister’s National Relief Fund.Payment had to be completed within seven days.The NCLT warned that if costs were not paid, the matter would be placed before the coram for further orders.Withdrawal became effective only after submission of proof of payment.
Unconditional withdrawal only: limits on recording settlement terms and on revival
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