Tech services provider moves insolvency plea against SpiceJet over Rs 2.7 cr default

Raymach's insolvency plea is the sixth plea against SpiceJet at NCLT Delhi in 2023

Raymach Technologies Private Limited, a company claiming to have provided business consulting and technical support to low-cost airline SpiceJet has filed a plea seeking to admit the airline to the insolvency resolution process contending that the airline owes them Rs. 2.7 crore.

The plea came up for hearing at the National Company Law Tribunal (NCLT) in Delhi on November 30, wherein the tribunal sought SpiceJet's response. The case is now likely to come up for hearing on January 9, 2024.

Appearing for Raymach, lawyer Bharat Arora argued that the company had periodically provided technical support staff to the company over the last four years. According to Arora, Raymach had sent the invoices to SpiceJet from time to time for the services they had rendered and the airline had not disputed the same. However, when Raymach sent them a notice under the Insolvency and Bankruptcy Code (IBC), 2016, the airline denied having availed any services from them.

Raymach's lawyer also took the tribunal through various correspondences between SpiceJet and them, he further cited the instances where SpiceJet had acknowledged Raymach's employees being deployed in their offices.

Insolvency pleas against SpiceJet

Raymach's insolvency plea is the sixth plea against SpiceJet at NCLT Delhi in 2023. Four aircraft lessors have filed five insolvency pleas against SpiceJet in 2023 for the non-payment of dues.

Aircastle Ireland Ltd, Willis Lease Corporation, Wilmington and Celestial filed petitions, asking NCLT to admit SpiceJet to the insolvency process to enable them to recover their dues.

While the NCLT has issued notice only in Aircastle's first plea, it has been urging the airline to settle with the lessors. In August, SpiceJet allotted over 48 million shares to nine aircraft lessors to clear outstanding dues worth 2.31 billion rupees (nearly $28 million), as the troubled airline looks to return to full operations

In July 2023, real estate company Acres Buildwell Private Limited withdrew its insolvency plea against low-cost airline SpiceJet.  Acres and SpiceJet informed the NCLT that they had settled between themselves. The tribunal accordingly passed an order permitting the withdrawal of the plea as the case was still in a preliminary stage.