The National Company Law Tribunal (NCLT) has fined carrier SpiceJet and aircraft lessor Aviator ML 29641 Ltd a combined INR 15 lakh for informing the tribunal about their settlement at the last minute, after orders had already been reserved in eight insolvency petitions against the airline. The tribunal directed both parties to pay INR 7.5 lakh each to the Prime Minister’s National Relief Fund.
The order was passed by the NCLT’s special bench, comprising judicial member Mahendra Khandelwal and technical member Anu Jagmohan Singh, on Wednesday. The bench stated that the cost of INR 15 lakh, payable equally by Aviator ML and SpiceJet, must be deposited in the Prime Minister’s National Relief Fund within seven days.
The tribunal expressed strong displeasure over the timing of SpiceJet’s disclosure, noting that the settlement was communicated on the very day the order was due to be pronounced. Describing the situation bluntly, the bench remarked that it amounted to “a fraud played with the bench.” As a result, the tribunal was forced to de-reserve the eight insolvency matters, noting that one of its members was demitting office that day and there was insufficient time to prepare detailed orders. The matters have since been directed to be placed before the regular bench for further consideration.
A SpiceJet spokesperson told Mint that the airline viewed the tribunal’s order as a positive step toward resolving outstanding matters, adding that the company remains committed to working closely and constructively with its partners to reach mutually acceptable solutions. Following the development, SpiceJet’s shares traded 2.1% lower at INR 10.95 on the BSE.
The controversy stems from a hearing held on Monday, during which SpiceJet informed the tribunal that it had settled its dispute with Aviator ML, having admitted the debt and made an initial payment of $500,000 under a settlement agreement executed overnight. The tribunal took issue with the timing of this disclosure, noting that it had repeatedly asked both parties whether a settlement was possible and questioned why this development had not been communicated earlier in the process.
This is not the first time the NCLT has raised concerns over SpiceJet’s handling of insolvency proceedings. Mint had earlier reported in December 2024 that the tribunal observed the insolvency forum was being used as leverage to negotiate settlements with the airline. Since 2023, SpiceJet has faced more than 20 insolvency petitions, though several cases have concluded in settlements with creditors and aircraft lessors, including Aircastle, Celestial Aviation, Alterna Aircraft and Raymach Technologies. Despite these resolutions, the airline continues to face insolvency claims from other creditors, with many petitions still pending final orders. Among the few cases where the NCLT has issued final rulings, the tribunal rejected an insolvency plea filed by Willis Lease Finance in December 2023, and more recently, in June, dismissed a plea filed by former SpiceJet pilot Devesh Bbyan seeking to initiate insolvency proceedings against the airline.
The broader context reflects SpiceJet’s ongoing financial strain, with the airline reporting a net loss for the April-December period of fiscal year 2026 amid continued cash flow pressures.