SpiceJet is once again in court, facing fresh insolvency proceedings from Indonesian carrier BBN Airlines, which is claiming that the Indian airline owes $5.94 million in unpaid lease rentals.
According to BBN, SpiceJet had leased three Boeing aircraft under specific agreements and took delivery of them in June 2024. The planes were then put into service by the airline. However, BBN alleges that lease payments between May and September 2024 were not paid.
The matter was brought before the Delhi bench of the National Company Law Tribunal (NCLT) on March 21, 2025, with a court filing detailing that the court heard arguments from lawyers representing both BBN and SpiceJet.
The filing also detailed how counsel representing SpiceJet strongly argued to the court that no formal notice should be issued against the budget carrier and requested more time to present arguments on the matter.
Local media reports highlighted that the Indonesian company claims that SpiceJet “repeatedly acknowledged the dues through emails and WhatsApp messages” and did not raise any objections until after a formal demand notice was sent.
This latest legal action against the Indian airline comes just weeks after NGF Alpha, NGF Genesis, NGF Charlie and a former pilot all filed petitions under Section 9 of the Insolvency & Bankruptcy Code (IBC), seeking initiation of insolvency proceedings against SpiceJet claiming dues totalling $12.6 million.
The lessors had previously leased five 737s to SpiceJet. They had served legal notice to budget carrier after alleging theft of parts of the aircraft, including engines and using them on other planes. The NCLT is looking into whether an insolvency plea filed by a former pilot is barred under Section 10A of the IBC.
In relation to this latest case with BBN, the court has scheduled the next hearing for April 21, 2025.