The National Company Law Tribunal (NCLT) on June 13 issued a notice to SpiceJet in an insolvency plea filed by Engine Lease Finance BV for non-payment of over $12 million for the eight engines it had leased to the budget airline.
The tribunal directed SpiceJet to file a response to the plea and listed the case for hearing on August 2. SpiceJet has also raised objections on the maintainability of the plea.
On the last date of hearing, SpiceJet objected to certain technical defects in the plea filed by Engine Lease Finance. Then the NCLT gave the lessor an opportunity to rectify the errors. When the defects were rectified, the tribunal issued a notice to the airline.
Lawyer Anandh Venkatramani appeared for the engine lessor, he was instructed by Saket Satapathy, partner of the law firm Tuli & Co. Lawyer Sanjay Gupta appeared for SpiceJet.
In 2023, Engine Lease Finance had moved the Delhi High Court, stating that they had terminated its lease with SpiceJet with respect to two engines but the airline continued to use it. As per the agreement, the airline cannot continue using the engine once the lease is terminated. The lessor sought the court's order to restrain SpiceJet from using its engine.
In October 2023, the lessor and SpiceJet arrived at an interim settlement with the engine lessor agreeing not to pursue the stay application against the airline.
Engine Lease Finance BV moved the court in December, alleging that the budget carrier had failed to make payments as agreed. The case is still pending in the high court, even though the engines have been grounded and returned to the lessor.
This lessor had also leased engines to the now grounded airline Go First and is fighting a litigation against it in the NCLT.
SpiceJet has been sued by many of its lessors over the last one year in connection with unpaid dues. While the airline has settled with nearly 15 such lessors, it continues to fight a string of litigations against them in the NCLT and the Delhi High Court.
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