ORDER

PER: MAHENDRA KHANDELWAL, MEMBER (JUDICIAL)

1. This is an Application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Willis Lease Finance Corporation (‘Operational Creditor’) duly authorized by its Board for initiation of Corporate Insolvency Resolution Process (‘CIRP’) against SpiceJet Limited. (‘Corporate Debtor’)

2. Willis Lease Finance Corporation (Operational Creditor) is has its registered office at 4700 Lyons Technology Parkway, Coconut Creek, Florida 33073, USA. SpiceJet Limited (Corporate Debtor) is a company registered under the Companies Act, 1956 [CIN- L51909DL1984PLC288239], having its registered office at Terminal 1D, Indira Gandhi International Airport, New Delhi, Delhi, 110037, India. The Corporate Debtor has Authorized Share Capital of Rs. 15,00,00,00,000/- and Paid-Up Share Capital of Rs. 6,01,84,56,650/-.

3. The present Application was filed on 11.04.2023 before this Adjudicating Authority by Mr. Milan Chitalia, the Authorised Representative of the Operational Creditor, duly authorized to initiate Corporate Insolvency Resolution Process (“CIRP”) proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“Code’). The total amount due as on 10.04.2023 is claimed to be Rs 53,96,65,759/- (Rupees Fifty-Three Crore Ninety-Six Lacs Sixty-Five Thousand Seven Hundred and Fifty-Nine Only). The date of default is 10.04.2023.

4. The present application was reserved on the issue of maintainability/issue of notice vide order dated 30.10.2023. Vide order dated 17.10.2023, both the parties were directed by this Adjudicating Authority to submit their written submissions. In the instant application, advance notice was issued in terms of NCLT Rules, 2016, and on this basis Ld. Counsel appeared, and made submissions with respect to issue of maintainability, and for not issuing notice and filed written synopsis as per this Adjudicating Authority’s order dated 17.10.2023.

5. Submissions by the Ld. Counsel appearing on behalf of the Operational Creditor

a) The Operational Creditor contends that the Company Petition is maintainable, and a notice ought to be issued to SpiceJet for, inter alia, the following reasons:

i. WLFC is an operational creditor in terms of section 5 (20) of the Insolvency and Bankruptcy Code, 2016.

ii.SpiceJet has repeatedly acknowledged its dues to WLFC and in some instances paid the invoices addressed by WLFC to SpiceJet that were issued in relation to the underlying agreements.

iii.SpiceJet has, in fact, specifically acknowledged WLFC’s right as a creditor by signing agreements and addressing admitted correspondence which identify that WLFC has the right to demand, receive and recover the same amounts, for whose default the present proceedings are initiated before this Hon’ble Tribunal.

iv.All the requirements under the Code are met and therefore the Hon’ble Tribunal ought to issue notice to SpiceJet.

b) All contentions raised orally by SpiceJet are denied by the Operational Creditor.At the stage for issuance of notice, SpiceJet entered appearance without filing any vakalatnama and attempted to orally raise several protracted and meritless objections on the maintainability of the Petition. WLFC repeatedly objected to such conduct. This Adjudicating Authority permitted SpiceJet, without being asked to place any facts or submissions in a counter-affidavit, to orally raise its objections on maintainability of the Company Petition. Hearings were held on 16 occasions, without issuing notice.

c) Malafide attempts are made by SpiceJet who has deliberately failed to make payments to various creditors, including the present Operational Creditor ought not to be permitted to raise formalistic pleas as a delay tactic, especially when it has repeatedly refused to file a counter in the present proceedings. The services provided to SpiceJet are not disputed by it, the invoices rai