Indian budget carrier SpiceJet Ltd. said the company and aircraft lessor Celestial Aviation avoided litigation and mutually settled their $29.9 million dispute through negotiations.

The representatives of both parties last week informed a bench of the National Company Law Tribunal (NCLT) that settlement terms had been reached and requested an adjournment, SpiceJet said in a stock exchange announcement today.

The NCLT granted the adjournment, and the matter is now scheduled to be formally withdrawn on 1 March, it added.

The settlement with the subsidiary of AerCap, one of the largest aircraft lessor groups, will help SpiceJet save 235 crore Indian rupees ($28.35 million), according to the statement.

SpiceJet Chairman and Managing Director Ajay Singh -- who along with Busy Bee Airways Private Ltd. has submitted a bid to acquire bankrupt GoFirst airline -- said the settlement marks a significant step forward for both parties.

“With this resolution, we can now focus on revamping our fleet and driving our business forward,” he noted.

The development comes after the listed carrier SpiceJet recently secured investments totaling 1,060 crore rupees through a preferential issue to investors, including Aries Opportunities Fund Ltd. and Elara India Opportunities Fund Ltd., according to the statement. Part of these funds will be allocated towards settling past liabilities, it said.

Note: $1 = 82.8954 Indian rupees

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