NCLT Delhi Issues Notice To Spicejet In An Insolvency Plea U/S 9 Of IBC

Background Facts

Spicejet Ltd. is engaged in affordable aviation business with domestic, international and charter flight facilities in India. A payment dispute had occurred between Spice Jet and Credit Suisse (Investment Banking Company), wherein the Madras High Court had ordered liquidation of Spicejet in January 2022. The Order was challenged before the Supreme Court and the Court had imposed a stay on order of winding up. Spicejet was directed by the Court to clear its dues at the earliest. In August 2022, Spicejet and Credit Suisse agreed to withdraw the matter before the Supreme Court in view of the settlement arrived between the Parties.

Subsequently in August 2022, Acres Buildwell Pvt. Ltd. ("Operational Creditor") had filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Spicejet Ltd., over an alleged non-payment of operational debt.

On 02.09.2022, the NCLT Bench has issued notice to Spicejet to appear in the matter and file their reply within two weeks. The next date of hearing is 30.09.2022.

Case title: Acres Buildwell Pvt. Ltd. v Spicejet Ltd.

Case No.: IB No. 637/ND/2022.

Counsel For Applicant: Adv. Mohit Jolly

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