SpiceJet Insolvency, Probe Panel for Protest Violence, ‘Industry’ Re-Defined & More

“We, as judges, are not gods. We will not get every judgment… The Constitution does not ask us merely to apply the law correctly. It asks us to apply it justly. That is perhaps why the responsibility of judging has always seemed larger to me than simply deciding who is legally correct.”

-Justice (retd) Sanjay Karol of the Supreme Court in his retirement speech

SpiceJet Manages Yet Another Lifeline in Insolvency Cases

This week, SpiceJet managed to secure another lifeline in the ongoing insolvency cases against it by reaching a surprise settlement with a petitioning creditor at almost the last moment. The move was not well received by the court, which described the development as a way of “wasting judicial time”, but ultimately allowed one of the many petitions against the airline to be withdrawn.

The settlement does more for the low-cost airline than simply get one petitioner off its back. Proceedings before the NCLT in as many as seven other insolvency petitions now stand deferred and will have to be heard afresh by a new bench.

This is because the NCLT was informed of the settlement on the day it was due to pass its order on eight petitions, just minutes before the ruling was to be pronounced in court and two days before one of the bench members was due to retire.

The settlement, however, was reached with only one of the petitioners. The court, cognisant of the fact that the cases were interlinked, allowed that petitioner to withdraw its plea but also noted that the remaining cases would have to be heard afresh.

The delayed and last-minute settlement also did not go down well with the NCLT, which imposed costs on both parties. The tribunal noted that the case had been pending since 2024 and that the parties had been given ample opportunity to settle.

Key Rulings:

• Supreme Court brings down the law practice criterion for civil judgeship from 3 years to 1 year but adds training and clerkship criteria

• Bombay High Court upholds the 0.25% regulatory fee of IBBI on resolution plans under the Insolvency and Bankruptcy Code

• Supreme Court sets up a probe panel headed by a former top court judge to look into allegations of police excesses, molestation, violence and surveillance, among others during the student protests called by the CJP in July

• Supreme Court’s nine-judge bench modifies the definition of industry and the triple test used for determining it

Courts: 

• In a case over minimum wage in rural employment schemes, the Supreme Court has raised a question if right to work should be made a fundamental right

• Supreme Court halts a high court order mandating copyright licence for music to be played at hotels or on cable TV

• Delhi High Court asks the centre to look into a plea for banning social media for children stating that it is a policy decision

• Supreme Court rejects a petition by Reliance Communication seeking to invoke its 8 billion rupees bank guarantee over unpaid spectrum dues

• Tarun Tejpal moves Supreme Court against high court decision to convict him in the 2013 rape case

• HUL moves Delhi High Court against the brand Beco for ad campaigns targeting HUL products Surf Excel and Vim

• The top court has sought replies from the centre and social media intermediaries on a plea asking for safeguards against law enforcement agencies uploading photographs of accused online

Quasi Courts:

• Another one of Anil Ambani group companies, Reliance Entertainment, admitted into insolvency over dues of 119.4 million rupees to an operational creditor

• NCLT’s Delhi bench imposes costs of 1.5 million rupees collectively on SpiceJet and one of its lessors Aviator ML for their conduct before the court and wasting judicial time after the two arrived at a settlement on the day the court was to deliver its judgment on the Aviator’s insolvency plea against the airline

Other:

• Delhi-based lawyer Vijay Aggarwal arrested and charged with sexual assault in London

The Big Listings:

• Aug 24: Andhra Pradesh High Court to hear PIL against Google’s proposed data centre in Visakhapatnam

• Aug 24: Delhi High Court to hear HUL’s lawsuit against home care brand Beco for ad campaigns targeting HUL’s brands

• Sep 9: Bombay High Court to hear Vijay Mallya’s plea against an order of special criminal court

• Sep 4: Securities Appellate Tribunal to hear appeal by Jane Street challenging SEBI’s move to allegedly refuse access to important documents to the firm in the case against it

* The dates of hearing can change and a concrete list is prepared just a day before

Legal Moves: 

• Centre notifies appointment of nine advocates as judges at the Punjab & Haryana High Court