SpiceJet unit settles dues with Canara Bank at NCLT

SpiceJet Merchandise Pvt Ltd, a subsidiary of no-frills carrier SpiceJet Ltd, is to make pending payments to public sector lender Canara Bank regarding a two-year-old acquisition. It was the resolution applicant for Miditech Pvt Ltd, in which Canara Bank was part of the committee of creditors (CoC) with more than 90% exposure. The SpiceJet arm had paid only INR 1 crore (in 2019) of the INR 2 crore it was supposed to pay. As there was a delay in payment, Canara Bank had filed a case at the National Company Law Tribunal (NCLT) on August 30, 2021, asking the company to either pay up or withdraw the resolution application.