SpiceJet's Insolvency Battle: Court Orders Update on Power of Attorney

The National Company Law Tribunal (NCLT) has directed three aircraft lessors of SpiceJet to furnish an updated Power of Attorney in the ongoing insolvency case. This development arose after the tribunal was informed that the existing power was only valid until February 11, 2025.

Aircraft lessors AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland had raised insolvency pleas following a SpiceJet default amounting to Rs 77 crore in April 2024. During the June 2 hearing, NCLT was alerted to the expiration issue.

SpiceJet's counsel argued the necessity of a current Power of Attorney to proceed. The lessors' counsel agreed to submit the updated document, leading to a postponement of proceedings until July 3, 2025. SpiceJet continues to face multiple creditor petitions amidst ongoing financial struggles.

(With inputs from agencies.)