SpiceJet tells NCLT: 'Matter settled with Celestial Aviation, only formalities remain'

SpiceJet says it has 'practically settled' with celestial

Low-cost airline SpiceJet on February 26 told the National Company Law Tribunal (NCLT) that their dispute with aircraft lessor Celestial Aviation is "practically settled" and only formalities remain.

Senior advocate Krishnendu Dutta, who appeared for SpiceJet told the tribunal that they have already paid some money and urged the tribunal to adjourn the case so that they can file the requisite application apprising the court of the settlement. The case has now been adjourned to April 2024. Lawyer Nitin Sarin, who appeared for Celestial told the court that while they have received payments, SpiceJet had missed certain agreed upon payment deadlines.

In October 2023, SpiceJet informed the tribunal that it was exploring the possibility of settlement  with Celestial.  In December 2023, SpiceJet informed the tribunal that they have made some payments to aircraft lessor Celestial Aviation. Celestial's counsel Nitin Sarin admitted to receiving the payment, despite the airline having missed some deadlines.

In 2023, Celestial's became the fifth petition to be moved by a lessor against the budget carrier, followed by Willis Lease Finance, Aircastle and Wilmington.

Two insolvency pleas turned down

On December 4, the NCLT dismissed a plea to initiate insolvency against SpiceJet 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. They filed a plea in April 2023 over unpaid dues. The tribunal heard SpiceJet's application questioning the maintainability of the plea for over six months before dismissing it on December 4.

In January 2024, the NCLT dismissed another insolvency plea filed against SpiceJet by Wilmington Trust SP Services. "The insolvency plea stands dismissed," a bench of NCLT comprising members Mahendra Khandelwal and Rahul Prasad Bhatnagar said.

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, one of the aircrafts belonged to Wilmington.