NCLT Issues Notices to SpiceJet Alleging Default Worth 77 Crore

On April 18, the National Company Law Tribunal (NCLT) sent notifications to SpiceJet regarding three insolvency petitions filed by aircraft lessors AWAS 36698 Ireland, AWAS 36694 Ireland, and AWAS 36695 Ireland, citing a total default of ₹77 Crore.

Representing the lessors, senior advocate Pramod Nair highlighted the petitions’ basis on a UK High Court judgment and the contractual agreement, urging the tribunal to summon SpiceJet for a response.

In contrast, SpiceJet’s senior advocate, Krishnendu Dutta, challenged the petitions’ validity, arguing their reliance on a foreign court’s judgment rather than the contractual agreement. Dutta emphasized the need for insolvency petitions to align with the agreement and pointed out the multiple forums addressing the same dispute due to the lessors’ pursuit of the foreign decree’s execution.

The tribunal instructed SpiceJet to respond within two weeks, scheduling a hearing for May 30, noting that concerns should be addressed through written responses.

In 2023, three aircraft lessors and a technical services provider filed insolvency petitions against SpiceJet for unpaid dues, with the NCLT issuing notice on one of Aircastle’s petitions. Despite SpiceJet’s allocation of shares to nine lessors in August 2023 to clear dues, legal challenges persist, with pleas by Wilmington and Willis rejected, and Aircastle’s pending judgment.