SpiceJet at NCLT: Wilmington an operational creditor in its own right, lessor says

Wilmington argued that it was a trustee of Aircastle and hence its insolvency plea against SpiceJet is maintainable and deserves a hearing by the tribunal

Aircraft lessor Wilmington Trust SP Services (Dublin) Limited argued at the National Company Law Tribunal (NCLT) on August 18 that it was an operational creditor in its own right and not the same as Aircastle (Ireland) Limited, as claimed by low-cost airline SpiceJet.

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. The lessor's lawyer Ajay Kumar took the court through various documents and agreements to establish that Wilmington is a different entity from Aircastle. He urged the court to issue notice in the plea and ask SpiceJet to file a response.

Senior advocate Krishnendu Dutta, who appeared for SpiceJet, argued that Wilmington and Aircastle were the same entity and this was the organisation's third insolvency plea against SpiceJet. He further argued that an insolvency plea by a trustee of a company was not maintainable.

The NCLT adjourned the case to September 12 due to paucity of time.

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

Aircastle had filed a response to SpiceJet's application questioning maintainability, and the airline on August 17 sought time to file a rejoinder to the response.

The case has now been adjourned to September 11.

In June 2023, Aircastle filed a second insolvency plea against SpiceJet. NCLT questioned the maintainability of the aircraft lessor's second insolvency petition against SpiceJet. The tribunal had asked Aircastle's lawyer to explain how the plea is maintainable with some legal precedents.  Arguments were advanced in the case on August 17, after which it was deferred to September 11 for further consideration.

A total of five insolvency pleas were filed by lessors against SpiceJet. Two pleas are filed by aircraft lessor Aircastle and one plea by lessor Wilmington, while Celestial and Willis Lease Finance have filed one plea each.

All the pleas are in different stages of hearing. However, notice has been issued in just one plea.