Aircastle gets two weeks to frame a reply to SpiceJet

The National Company Law Tribunal (NCLT) on Thursday granted two weeks to aircraft leasing company Aircastle (Ireland) to file a reply to Spicejet's application questioning the maintainability of the insolvency petition filed by the lessor.
Aircastle (Ireland) had filed a petition under section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to start the corporate insolvency resolution process (CIRP) against Spicejet Ltd on April 28. Spicejet filed an application on June 5, questioning the maintainability of the petition filed under section 60(5) and 10(A) of the IBC, 2016.

The senior counsel appearing for Spicejet claimed two defects in the section 9 petition filed by the lessor pertaining to a valid power of attorney and affidavit. He also argued that given that the debt fell due in February 2021, the matter pertained to section 10A of the IBC, 2016. The IBC was amended by the government in 2020 to introduce section 10A, which came into force on June 5, 2020. Section 10A offers protection to the corporate debtor for any default that occurred from March 25, 2020 to March 24, 2021.

On June 6, the NCLT granted time to Aircastle (Ireland) Limited to file a rejoinder and listed the matter for July 17. Spicejet can file a rejoinder within a week of the filing of reply by Aircastle (Ireland) Limited. The application is listed for hearing along with the main matter for July 17.