TBM Staff - Mumbai
Engine Lease Finance Files Insolvency Plea Against SpiceJet Over Unpaid Debt
Engine Lease Finance BV (ELF), a leading aircraft engine lessor of SpiceJet, has filed an insolvency petition before the National Company Law Tribunal (NCLT) in Delhi, citing SpiceJet’s non-payment of over USD 12 million (approximately INR 100 crore). ELF has leased eight engines to SpiceJet and claims an additional USD 4 million in interest and rental.
The matter was heard briefly by a bench of the NCLT comprising Mahendra Khandelwal and Sanjeev Ranjan on Wednesday. SpiceJet’s counsel sought time to respond to the petition, prompting the bench to direct SpiceJet to file its response.
ELF, headquartered in Shannon, Ireland, entered into a lease agreement with SpiceJet in 2017. However, SpiceJet has defaulted on payments since April 2021, according to ELF. During the hearing, SpiceJet’s counsel argued that there is a pre-existing dispute between the parties.
ELF had previously approached the Delhi High Court in 2023 after terminating the lease for two engines and seeking possession. The parties later reached a settlement, but ELF again approached the high court after alleging SpiceJet failed to pay in accordance with the terms. The matter is still pending before the Delhi High Court.
SpiceJet has faced insolvency petitions from several creditors, including Willis Lease, Aircastle Ireland Ltd, Wilmington Trust, and Celestial Aviation. While the NCLT rejected the pleas of Willis Lease Finance and Wilmington Trust, SpiceJet settled the case with Celestial Aviation. The petitions filed by Aircastle and Alterna Aircraft are pending before the insolvency tribunal.
Wilmington Trust and Willis Lease Finance have moved the National Company Law Appellate Tribunal (NCLAT) to challenge the dismissal of their insolvency plea by NCLT.
