Authority: National Company Law Tribunal, New Delhi Bench (Court-V)

Order Date: 12 June 2026

Case Overview

The National Company Law Tribunal (NCLT) New Delhi Bench heard an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Capt. Devesh Bbyan (Operational Creditor) against SpiceJet Limited (Corporate Debtor). The petition sought initiation of Corporate Insolvency Resolution Process (CIRP) over alleged default in payment of employment dues amounting to Rs. 1,13,56,444.00 plus interest of Rs. 56,78,222.00 at 24% per annum, totaling Rs. 1,70,34,666.00.

The Operational Creditor, a former pilot, claimed unpaid salary for the periods April 2020-March 2021, April 2021-March 2022, and April 2022-August 2022 under his original employment contract dated 23 April 2019 which offered an annual compensation of Rs. 77,40,000.00. The Corporate Debtor disputed the claim, arguing that the original contract was novated in June 2020 through a Google form acceptance of revised "Transitionary Terms," and that the actual amount payable was significantly lower, around Rs. 3,95,613.00 as full and final settlement.

The tribunal analyzed three key issues: whether employment dues qualify as operational debt (concluded yes), the applicability of Section 10A IBC for the Covid-19 moratorium period (25 March 2020 to 24 March 2021), the admissibility of interest claims without agreement, and the existence of a pre-existing dispute.

The tribunal examined the calculation sheet (Annexure-4) filed by the petitioner which showed Rs. 47,52,918.00 claimed for April 2020-March 2021 period, which falls under the Section 10A moratorium. Citing the Supreme Court judgment in Ramesh Kymal Vs Siemens Gamesa Renewable Power Pvt Ltd., the tribunal excluded this amount from the threshold calculation. The tribunal also disallowed the interest claim of Rs. 56,78,222.00, citing NCLAT precedents that require an agreement for interest payment. This reduced the admissible claim to Rs. 66,03,526.00, below the Rs. 1 crore threshold under Section 4 of IBC.

Additionally, the tribunal found evidence of a pre-existing dispute through email exchanges between the parties from November 2022 and November 2023, where the Corporate Debtor offered a settlement amount of Rs. 3,95,613.00 while the Operational Creditor claimed significantly higher amounts. The tribunal cited the Supreme Court judgment in GLS Films Industries Private Limited vs Chemical Suppliers India Private Limited (2026) which emphasized that the adjudicating authority need only satisfy itself about the existence of a plausible pre-existing dispute, not its merits.

Final Outcome

The NCLT dismissed the application (CP (IB) No. 148/ND/2025) on two grounds: (1) the admissible claim amount of Rs. 66,03,526.00 was below the Rs. 1 crore threshold required under Section 4 of IBC, and (2) there existed a pre-existing dispute between the parties regarding the quantum of employment dues prior to the issuance of the Section 8 notice. The Corporate Insolvency Resolution Process against SpiceJet Limited was not initiated.

Topics: Insolvency Proceedings, Employment Dispute, Threshold Jurisdiction