SpiceJet’s insolvency petition dismissed by NCLT, Wilmington Trust’s claim rejected.

SpiceJet Receives Relief as NCLT Dismisses Insolvency Petition

The National Company Law Tribunal (NCLT) has provided a significant relief to low-cost carrier SpiceJet by dismissing an insolvency petition filed against the company. The petition was brought forward by aircraft lessor Wilmington Trust SP Services, based in Dublin, Ireland. This development comes after another insolvency plea by Willis Lease Finance Corporation was also dismissed by the NCLT last month.

Wilmington Trust had filed the insolvency petition in June 2023, citing unpaid dues from SpiceJet. However, the Delhi-based bench of NCLT, consisting of members Mahendra Khandelwal and Rahul Prasad Bhatnagar, ruled in favor of SpiceJet and dismissed the petition. It is worth noting that SpiceJet has faced insolvency pleas from various aircraft lessors, including Aircastle Ireland Ltd, Wilmington, Celestial Aviation, and Willis Lease.

While the NCLT has only issued notice on the petition filed by Aircastle so far, this dismissal provides a favorable outcome for SpiceJet in its ongoing legal battles. In a separate ruling, the Delhi High Court had previously directed SpiceJet to pay USD 4 million to its two engine lessors, Team France 01 SAS and Sunbird France 02 SAS, by February 15.

This decision by the NCLT marks a positive turn for SpiceJet, relieving the airline from the insolvency claims made against it.

The National Company Law Tribunal (NCLT) has rejected the insolvency petition filed by Wilmington Trust against Indian airline SpiceJet. In its ruling, the NCLT stated that the petition lacked merit and failed to establish a prima facie case against the airline. Wilmington Trust, an aircraft lessor, had sought to recover dues amounting to $16 million from SpiceJet. However, the NCLT’s decision ensures that SpiceJet will continue its operations without any immediate financial disruptions.

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