NCLT sends bankruptcy notice to SpiceJetImage Credit source: File Photo
On the one hand, the aviation sector is booming in the country. Every day a new record is being created in terms of the number of domestic passengers. On the other hand, the condition of companies providing cheap air travel is bad. First Go First declared itself bankrupt and now it is awaiting the decision of NCLT. On the other hand, NCLT has sent bankruptcy notice to SpiceJet. What is the whole matter… let’s understand.
NCLT has issued this notice to SpiceJet on the petition of an aircraft rental company of Ireland. In its petition, Aircastle (Ireland) Limited has appealed to NCLT to initiate insolvency process against SpiceJet.
Hearing will be held on May 17
NCLT will now hear on May 17 under the Insolvency Act against SpiceJet. A two-member bench of NCLT has sent a notice to SpiceJet. NCLT President Ramalingam Sudhakar was presiding over this bench. On the bankruptcy notice, a SpiceJet spokesperson has said that in the case of Aircastle, the NCLT has sent a general notice to it.
Negotiations continue between the two sides
It has been said on behalf of SpiceJet that the NCLT has not taken any adverse decision. Rather, he has accepted the fact that talks are going on between the two sides regarding the settlement and both the parties can continue their talks further.
Aircastle filed this petition against SpiceJet on 28 April. After hearing on this on Monday, NCLT issued a notice to SpiceJet. This is the second budget airline after GoFirst that is facing trial under the Insolvency Act.
SpiceJet has already returned the aircraft
Last week itself, SpiceJet had given its clarification regarding Aircastle’s petition. The company says that due to this petition, there will be no impact on its flight service. At the same time, the company is hopeful that there will be an out-of-court settlement in this matter. SpiceJet has already returned all the aircraft of Aircastle.