SpiceJet faces new insolvency plea by aircraft lessor over default of ₹58.64 crore

Aviator ML 29641 Limited, an aircraft lessor to low cost airline SpiceJet, has moved an insolvency plea under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against the airline on Monday over an alleged default of ₹58.64 crore..The plea came up for hearing at the National Company Law Tribunal (NCLT) Delhi before a coram of judicial member Mahendra Khandelwal and technical member Dr. Sanjeev Ranjan..Advocate Shyam Kapadia, who appeared for the lessor, contended that the airline owed them ₹58.64 crore or $7 million towards lease dues. He argued that the lessor had sent a notice under Section 8 of the IBC to the airline prior to filing plea. However, the airline responded to the notice only after the plea was filed. He said,“The reply does not dispute the lease or the amount outstanding. It only speaks of a purported settlement.” .SpiceJet’s lawyer, however, pointed out that while the lessor claims to have not received a response to the Section 8 notice, they have quoted from the response in the plea before the NCLT. He urged the NCLT not to issue a notice to the plea on these grounds. After hearing the submissions, the NCLT asked the lessor to file a copy of the response to the Section 8 notice as an additional document. When Kapadia insisted that the bench issue notice to SpiceJet, the Tribunal said, “You file the response and we will see.” Thus, the Tribunal refused to issue notice to the airline. Kapadia requested the coram to post the case for hearing in the next two days so that he could file the response. The case was, however, adjourned to November 11. .SpiceJet has been mired with a series of insolvency pleas, mainly by its lessors, since early 2023. In September 2024, the NCLT issued notice to SpiceJet in an insolvency plea filed by Techjockey Infotech, an operational creditor. This company claimed a default of nearly ₹1.2 crore owed by SpiceJet against software services availed by them.In late 2023 and early 2024, the NCLT dismissed two insolvency pleas against SpiceJet by lessors Wilmington Trust SP Services and Wills Lease Finance. Both these lessors have now approached the National Company Law Appellate Tribunal (NCLAT) in appeal..Last month, the Delhi High Court upheld an order directing SpiceJet to ground three of its engines for defaulting on payment to French engines lessors.A Division Bench of Justices Rajiv Shakdher and Amit Bansal refused to interfere with single-judge's order directing SpiceJet to ground the engines.The single-judge had passed an order on August 14, directing SpiceJet to ground three engines leased from two French lessors after the airline defaulted on rental lease payments..Delhi High Court upholds order directing SpiceJet to ground 3 engines