NCLT Dismisses Insolvency Plea Filed by Ex‑SpiceJet Pilot, Rules Salary Claim Below ₹1 Crore and Disputed [Read Order]

The National Company Law Tribunal (NCLT), New Delhi Bench (V), dismissed the insolvency petition of SpiceJet filed ,findingthat the claimed salary dues of ₹1.13 crore were disputed and partly barred under Section 10A of the Insolvency and 

Bankruptcy Code (IBC). 

The case arose when operational creditor Capt. Devesh Bbyan, a pilot employed by SpiceJet Limited, approached the National Company Law Tribunal (NCLT), New Delhi Bench, under Section 9 of the Insolvency and Bankruptcy Code, 2016. He alleged that the airline had defaulted on payment of his employment dues amounting to ₹1.13 crore, with an additional claim of interest at 24% per annum, bringing the total demand to about ₹1.70 crore.

In support of his petition, the operational creditor argued that he had been appointed as a Trainee Captain in April 2019 with an annual package of ₹77.40 lakh. For services rendered between April 2020 and August 2022, he claimed that ₹1.83 crore was payable, of which only ₹69.61 lakh had been disbursed, leaving a substantial balance unpaid.

He maintained that employment dues fall within the definition of “operational debt” under Section 5(21) of the IBC, thereby entitling him to seek initiation of insolvency proceedings against the corporate debtor.

On the other hand, the corporate debtor, SpiceJet, argued that except for the basic salary component, other parts of the petitioner’s compensation were variable, reducing the actual liability. It further pointed out that ₹47.52 lakh of the claim pertained to April 2020–March 2021, a period covered by Section 10A of the IBC, which barred insolvency filings for defaults arising during the COVID‑19 suspension window. Excluding this amount, the claim fell below the statutory threshold of ₹1 crore.

Additionally, the airline asserted that the petitioner had accepted the revised “Transitionary Terms” in June 2020 via a Google‑form consent, thereby novating the original contract. It claimed that a full‑and‑final settlement of ₹3.95 lakh had been communicated via emails in November 2023 and January 2024, and that any further claims were disputed.

The bench comprising Anu Jagmohan Singh (Technical Member) and Mahendre Khandelwal (Judicial Member), after considering submissions from both sides, held that employment dues do qualify as operational debt under the IBC. It stated that the claim must satisfy the monetary threshold and be free from pre‑existing disputes.

On examining the petitioner’s calculation sheet, the Bench noted that ₹47.52 lakh of the claim fell within the Section 10A bar, which categorically prohibits CIRP filings for defaults during the specified pandemic period.

The Tribunal found that email exchanges and communications regarding full‑and‑final settlement evidenced a genuine dispute over the quantum of dues and contract terms. Relying on Supreme Court precedents, it reiterated that insolvency cannot be invoked where a plausible pre‑existing dispute exists.

In its ruling, the NCLT concluded that the petition was not maintainable and dismissed the application under Section 9 of the IBC seeking initiation of CIRP against SpiceJet Limited.

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