Why SpiceJet has been fined ₹15L by NCLT
What's the story
The National Company Law Tribunal (NCLT) has slapped a fine of ₹15 lakh each on SpiceJet and aircraft lessor Aviator ML 29641 Ltd. The penalty was imposed after both parties informed the tribunal about their settlement on the day an order was to be pronounced. The tribunal expressed its displeasure over the timing of this disclosure, as it had already reserved its decision.
Case postponement
NCLT defers decision on insolvency pleas against SpiceJet
The NCLT has deferred its decision on the insolvency pleas against SpiceJet. It has asked a regular bench of the tribunal to take up the matter coming Monday.
This comes after SpiceJet informed the tribunal about its settlement with one of its creditors, Aviator ML, during a hearing.
The airline said it had admitted the debt and made an initial payment of $500,000 under a settlement agreement executed overnight.
Judicial criticism
'Precious judicial time has been wasted,' says NCLT
The NCLT was not pleased with SpiceJet's last-minute disclosure of the settlement.
The tribunal said it had repeatedly asked if there was any possibility of a settlement and questioned why this information wasn't shared earlier.
"Precious judicial time has been wasted," the tribunal said, criticizing SpiceJet for its late disclosure.
The bench described this approach as a "wrong tactic" and accused SpiceJet of taking the court for granted.
Special tribunal
NCLT hard pressed for time, had set aside other work
The NCLT noted that a special bench had been constituted to hear the insolvency matters against SpiceJet and that judicial time had been set aside for preparing orders.
The bench said it was already "hard pressed" for time and had put aside other work to deal with these cases.
Counsel representing other creditors opposed any further delay, arguing that the settlement with one creditor shouldn't stall seven other petitions already heard and reserved for orders.
Financial woes
SpiceJet's financial struggles
SpiceJet has been struggling with huge financial losses and cash strain. For FY26's April-December period, it reported a net loss of ₹1,138.15 crore.
The airline's revenue from operations stood at ₹3,271.5 crore for the period ending December 31, down 14% over the year-ago-period.
Its market share also fell to 1.9% in June from 3.9% at the beginning of the year.