SpiceJet's share price is in the spotlight as the National Company Law Tribunal (NCLT) has directed the airline’s lessors to submit a valid Power of Attorney by July 3. This development comes amid ongoing challenges faced by the airline, and it is expected to have an impact on the company's financial and operational stability.
The National Company Law Tribunal (NCLT) has directed 3 lessors of SpiceJet to submit a valid and current Power of Attorney by July 3, 2025. The instruction comes amid insolvency proceedings initiated over a default amounting to ₹77 crore.
The petition was filed in April 2024 by AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland. These entities had approached the NCLT, seeking insolvency action against SpiceJet.
However, during the hearing that began on June 2, SpiceJet's counsel raised an objection regarding the legitimacy of the Power of Attorney submitted by the lessors. It was revealed that the authorisation was only valid until February 11, 2025.
The tribunal recorded the submission, stating, “In order to continue the proceeding by the person who has initiated this petition, there must be a valid Power of Attorney existing at the present point in time.”
In light of the issue, the counsel for the lessors requested an extension to furnish the necessary documentation. The tribunal agreed and rescheduled the hearing, stating, “In view of this, list the matter on July 3, 2025.”
This pause provides the lessors time to submit updated legal authority to maintain the proceedings against the airline.
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The current dispute is part of a broader legal and financial battle the airline is facing. Over its 19 years of operation, SpiceJet has encountered multiple insolvency petitions filed by a range of creditors. These include:
Cases have been initiated at both the NCLT and the appellate body, National Company Law Appellate Tribunal (NCLAT), placing the airline under heightened judicial scrutiny.
SpiceJet share price was trading with marginal gains of 0.61% as of 9:23 AM on June 6, 2025. In the last 1 month, it has dropped by 4.22%.
Over the past week, SpiceJet’s share price declined by 5.18%, signalling short-term selling pressure. In the one-month period, the stock continued its downward trajectory with a 4.29% fall, reflecting sustained weakness. The trend worsens over a three-month horizon, where the share price registered a significant decline of 13.98%, indicating considerable erosion in investor confidence.
This extended decline across all measured periods suggests underlying concerns in the market regarding SpiceJet’s financial stability, legal matters, and operational challenges. The negative sentiment could be influenced by insolvency-related proceedings, lease disputes, or other industry-specific pressures affecting the airline sector.
The NCLT’s directive underscores the necessity for procedural compliance in legal filings, especially in high-stakes insolvency matters. The next hearing on July 3 will determine the way forward, contingent upon the submission of valid Power of Attorney by SpiceJet’s lessors.
Disclaimer:This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jun 6, 2025, 11:43 AM IST
Team Angel One
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