Aircraft Lessors Insolvency Plea Against Spicejet Hits Roadblock Over Power Of Attorney

Aircraft Lessors Insolvency Plea Against Spicejet Hits Roadblock Over Power Of Attorney

Introduction

The National Company Law Tribunal (NCLT) has directed three aircraft lessors of low-cost carrier SpiceJet to file a valid Power of Attorney existing at the present point in time. The direction came during a hearing on the petitions filed by the three lessors - AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland.

Factual Background

The three aircraft lessors filed insolvency pleas against SpiceJet over a default of ₹77 crore in April 2024. However, during the hearing on June 2, 2025, it was pointed out that the person who had filed the petition on behalf of the lessors had a Power of Attorney that was valid only up to February 11, 2025.

Procedural Background

The case is being heard by the NCLT, and the petitioners are represented by their counsel. SpiceJet is also represented by its counsel, who raised the issue of the validity of the Power of Attorney. The NCLT has adjourned the matter to July 3, 2025, to allow the petitioners to file a fresh Power of Attorney.

Issues Involved

1. Validity of Power of Attorney: Whether the Power of Attorney filed by the petitioners is valid and existing at the present point in time.

2. Maintainability of Petition: Whether the petition filed by the lessors is maintainable in the absence of a valid Power of Attorney.

Contentions of the Parties

SpiceJet's Contentions: SpiceJet's counsel contended that the Power of Attorney granted to the person who filed the petition was valid only up to February 11, 2025, and no fresh Power of Attorney has been brought on record.

Aircraft Lessors' Contentions: The counsel representing the aircraft lessors submitted that they would file a fresh Power of Attorney and sought time for the same.

Reasoning and Analysis

The NCLT observed that in order to continue the proceeding, there must be a valid Power of Attorney existing at the present point of time. The tribunal directed the petitioners to file a fresh Power of Attorney and adjourned the matter to July 3, 2025.

Final Decision

The NCLT has directed the aircraft lessors to file a valid Power of Attorney existing at the present point in time and has adjourned the matter to July 3, 2025.

Law Settled

This judgment highlights the importance of having a valid Power of Attorney in place for filing and pursuing petitions before the NCLT.