BackSpiceJet reaches settlement with Raymach Technologies, vendor to withdraw insolvency case
The NCLT has granted time for the withdrawal application, adjourning the matter until August.SpiceJet has faced several insolvency pleas in the NCLT over pending dues from various parties
PremiumNEW DELHI:Budget airline SpiceJet informed the National Company Law Tribunal (NCLT) on Friday that it has reached a settlement with its vendor, Raymach Technologies Pvt Ltd, over pending dues.
Raymach Technologies also communicated its intention to withdraw the insolvency case against SpiceJet. The NCLT granted Raymach time to file the withdrawal application, adjourning the matter until August.
In November 2023, Raymach Technologies, a business consultancy for the IT and aviation industries, had filed an insolvency petition against SpiceJet under Section 9 of the Insolvency and Bankruptcy Code, 2016, for a default of ₹2.7 crore.
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Raymach claimed to have consistently provided business consulting and technical support services to the airline over the past four years, with invoices regularly sent and acknowledged by SpiceJet. However, when Raymach initiated proceedings under the Insolvency and Bankruptcy Code (IBC), SpiceJet denied having availed of its services.
During a previous hearing, Raymach presented various email exchanges between the two companies, revealing that SpiceJet had acknowledged the services provided. The tribunal, however, asked Raymach to remove invoices from the COVID period from the petition, as no application to initiate insolvency proceedings could be admitted for a default that occurred during the pandemic.
SpiceJet has faced several insolvency pleas in the NCLT over pending dues from various parties, including Engine Lease Finance BV, Wilmington Trust SP Services (Dublin), Willis Lease Finance, Celestial Aviation, Aircastle, Alterna Aircraft, and AWAS entities from Ireland.
In May, Engine Lease Finance BV filed the most recent insolvency plea, claiming unpaid rental dues totalling more than $16.72 million, including interest, for eight leased engines.
The NCLT has rejected the pleas of Willis Lease Finance and Wilmington Trust SP, while SpiceJet settled with Celestial Aviation. The pleas by Aircastle, Alterna Aircraft, and AWAS entities are still pending. Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) to challenge the NCLT's dismissal of their insolvency pleas.
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