SpiceJet shares rise 5% as NCLT rejects IBC plea

Why SpiceJet stock moved on June 12

SpiceJet shares rose sharply on June 12 after the Delhi bench of the National Company Law Tribunal (NCLT) rejected a plea seeking to start insolvency proceedings against the airline. The stock was also supported by a broader upbeat tone in airline counters as oil prices slipped to two-month lows on expectations of an impending agreement and hopes of a peace deal. Together, the legal update and lower crude prices helped lift sentiment around the company during morning trade.

At 11:35 am on June 12, SpiceJet shares were trading 4.95% higher at Rs 12.08 apiece. In a separate market update from another day, the stock was reported up 3.8% at Rs 12.57 on BSE at 10:52 IST.

NCLT dismisses former pilot Devesh Bbyan’s petition

The immediate trigger for the June 12 move was the NCLT order rejecting a petition filed by former SpiceJet pilot Devesh Bbyan. Bbyan sought initiation of insolvency proceedings against SpiceJet, citing unpaid employment dues.

According to the details reported, Bbyan filed a claim for Rs 1.7 crore towards unpaid dues for the period from March 2020 to August 2022. The Delhi bench, comprising judicial member Mahendra Khandelwal and technical member Anu Jagmohan, stated that the petition stood “dismissed”.

Separate NCLT dismissal: plea by two former captains

In another order, the Delhi bench of the NCLT also rejected a plea by two former employees of SpiceJet Ltd to initiate insolvency proceedings against the airline. The former employees were identified as Sameer Breja and Karan Gupta, who worked as captains.

They alleged that SpiceJet had not paid them INR 12.17 million and INR 13.19 million, respectively. The bench, comprising judicial member Mahendra Khandelwal and technical member Anu Jagmohan Singh, said the insolvency petition stood “dismissed”, and a detailed order was awaited.

SpiceJet’s defence and the tribunal’s earlier observations

While contesting the insolvency case, SpiceJet argued that most of the amount claimed by the petitioners was barred by limitation. The tribunal had also previously observed that it was not a forum for deciding employment dues.

The NCLT noted that it was neither a labour court nor a court for writ jurisdiction. It added that parties could not bring employer-employee relationship disputes before the tribunal. These observations form an important backdrop to the dismissal of petitions based on employment claims.

Oil prices and airline sentiment add to the rally

Apart from the legal outcome, airline stocks benefited from a decline in crude oil prices. Oil prices were reported to have slumped to two-month lows on expectations of an impending agreement, which supported bullish sentiment for airline counters.

For airlines, fuel costs are a key operating variable, and crude price moves often influence market sentiment around the sector. On June 12, that macro tailwind coincided with SpiceJet’s favourable legal update, pushing the stock higher.

Other insolvency petitions remain in focus

Separate from the dismissed employee petitions, SpiceJet has faced insolvency petitions from Ireland-based aircraft lessors. NGF Alpha, NGF Genesis, and NGF Charlie moved the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC), seeking to initiate insolvency proceedings over outstanding payments totaling $12.68 million (about ₹110 crore).

During proceedings earlier, SpiceJet requested time to resolve the dispute and said settlement discussions were underway. The next hearing for these lessor petitions is scheduled for April 7, 2025.

In a separate case, the NCLT is examining whether an insolvency plea filed by a former pilot is barred under Section 10A of the IBC, along with limitation issues. Section 10A was introduced as a temporary pandemic-era relief measure and prevents creditors from initiating insolvency proceedings for defaults occurring between March 25, 2020, and March 24, 2021. That matter is set for a hearing on April 15, 2025.

Supreme Court and other legal updates around SpiceJet

SpiceJet has also been in the spotlight due to court proceedings linked to its long-running dispute involving Kalanithi Maran and KAL Airways. A report said the Supreme Court dismissed a plea by SpiceJet and its chairman Ajay Singh challenging a Delhi High Court order directing a deposit of Rs 144.5 crore. The Supreme Court also imposed costs of Rs 1 lakh on Ajay Singh, and directed that the amount be deposited within six weeks. SpiceJet said it assured stakeholders that the development had no impact on day-to-day operations.

In another separate development reported by PTI, SpiceJet shares surged nearly 6% after the Supreme Court dismissed a plea by KAL Airways and Kalanithi Maran seeking damages of over Rs 1,300 crore, with the court upholding a Delhi High Court order of May 23 dismissing their plea on grounds of delay.

Key facts at a glance

What the NCLT dismissals mean for investors

The NCLT’s rejection of employee-led insolvency petitions reduced immediate uncertainty around whether those specific claims could push SpiceJet into an IBC process. The tribunal’s comments that it is not the appropriate forum for employment dues also provide context for why such petitions may not succeed.

At the same time, other creditor-related petitions, including those from aircraft lessors, remain active and have scheduled hearings in 2025. Investors are also tracking legal outcomes in parallel disputes, including orders involving deposits and damages claims, because they can influence cash outflows, disclosures, and broader risk perception.

Conclusion

SpiceJet shares gained on June 12 after the NCLT Delhi dismissed a former pilot’s insolvency petition, adding to relief-driven buying amid a supportive move in oil prices. Separate NCLT orders have also rejected insolvency pleas by two former captains over alleged unpaid dues, while other creditor petitions and hearings remain on the calendar for 2025. The next set of milestones includes the scheduled NCLT hearings in April 2025 and the timelines indicated in court directions already reported.