SpiceJet Faces Another Insolvency Plea from Aircraft Lessors

The National Company Law Tribunal on Thursday issued notices to low-cost airline SpiceJet Ltd. in three insolvency pleas filed by three aircraft lessors, which collectively amount to a total default of Rs 77 crore. These lessors include AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland.

However, this is not the first time such a plea has been filed against Spicejet. In 2023 alone, three aircraft lessors, including Celestial Aviation Services Ltd., Aircastle (Ireland) Ltd., and Wilmington Trust SP Services (Dublin) Ltd., filed four insolvency pleas against SpiceJet for non-payment of dues.

Additionally, a technical services provider also lodged an insolvency plea against the airline. However, notice was only issued in Aircastle's plea.

Senior advocate Pramod Nair, representing the lessors, argued that the plea was based on a judgment from the High Court of the United Kingdom and the contract between the parties. Nair urged the tribunal to issue notice to SpiceJet and request a response to the plea.

Senior advocate Krishnendu Dutta, representing SpiceJet, questioned the maintainability of the plea, contending that it solely relies on a foreign court judgement rather than the contract between the parties. Dutta argued that an insolvency plea is only valid if it is based on the agreement between the parties.

He also highlighted that the lessors had approached the high court to execute the foreign decree, thus resorting to multiple litigations for the same issue.

In response, the tribunal issued notice to the airline and scheduled the case for hearing on May 30th.