Wilmington Trust files insolvency appeal against SpiceJet in NCLAT

Insolvency appeal filed against SpiceJet

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26 Aug, 2025 12:21

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Wilmington Trust SP Services has filed an appeal in the National Company Law Appellate Tribunal (NCLAT) against an order of the National Company Law Tribunal (NCLT) dismissing an insolvency plea filed against low-cost airline SpiceJet.

The plea is expected to come up for hearing on March 21. The NCLT dismissed the plea on January 29. 

Wilmington had moved an insolvency plea against SpiceJet in June 2023 over unpaid dues. In May 2023, the Directorate General of Civil Aviation (DGCA) deregistered three planes of SpiceJet at the request of lessors, and one of the aircraft belonged to Wilmington.

Lessors Wilmington Trust SP Services, Sabarmati Aviation Leasing and Falgu Aviation Leasing approached the civil aviation regulator, requesting deregisteration of three Boeing 737-800s over non-payment of dues.

The DGCA deregistered the planes with call signs VT-MXJ, MXF and SZJ.

At the NCLT, SpiceJet had argued that Wilmington was a part of Aircastle, which had moved two insolvency pleas already.

Wilmington argued that it was a trustee of Aircastle and hence its insolvency plea is maintainable and deserves a hearing by the tribunal. Wilmington's lawyer argued that a trust can classified as operational creditor under the Insolvency and Bankruptcy Code, 2016.

SpiceJet and lessors

Wilmington's is the second insolvency plea against SpiceJet dismissed by NCLT in the last two months. In December 2023, the NCLT dismissed a plea to initiate insolvency against the airline filed by aircraft lessor Willis Lease Finance over unpaid dues.

SpiceJet had questioned the maintainability of Willis' plea because they had filed a similar plea earlier this year but chose to withdraw it owing to certain technical defects.

In 2023, three lessors moved four insolvency pleas over unpaid dues. NCLT however issued notice only in Aircastle's plea.

Aircraft lessor Aircastle has filed two different insolvency pleas against SpiceJet. In May 2023, NCLT issued a notice in the plea and sought SpiceJet's response. However, in June 2023, SpiceJet challenged the maintainability of Aircastle's first insolvency plea on technical grounds.