The National Company Law Tribunal has granted SpiceJet Ltd. and aircraft lessor Celestial Aviation Services Ltd. more time to settle their dispute after hearing the matter on Thursday.
Celestial Aviation had taken the no-frills airline to the insolvency court in August over non-payment of dues.
SpiceJet Ltd. informed the National Company Law Tribunal on Thursday that it had made partial payments to Celestial Aviation Services.
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This development follows the parties' announcement in October that they were exploring the possibility of a settlement. During the hearing, counsel for both the parties revealed the partial payments made by the beleaguered airline and sought an adjournment.
Acknowledging the ongoing discussions, the NCLT granted Celestial Aviation and SpiceJet additional time to negotiate and settle their dispute. It deferred the hearing in the case to the latter half of January.
The tribunal has been encouraging the low-cost carrier to consider settlements with lessors due to a Ministry of Corporate Affairs' notification that exempted aviation leases from the moratorium.
SpiceJet also is contending three insolvency proceedings initiated by two aircraft lessors—Aircastle (Ireland) Ltd. and Wilmington Trust SP Services (Dublin) Ltd. The airline has contested the maintainability of these petitions.
Having previously disclosed multiple insolvency pleas from lessors, the NCLT recommended that SpiceJet actively explore settlement options with them instead of facing proceedings from financial institutions.
The tribunal had also provided relief to SpiceJet earlier by dismissing an insolvency petition filed by aircraft lessor Willis Lease Finance Corp.
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