India’s SpiceJet has been hit with fresh legal action, after three Irish aircraft lessors and a former pilot filed insolvency petitions against the airline in the Indian National Company Law Tribunal (NCLT), citing unpaid dues.
The Economic Times reported that NGF Alpha, NGF Genesis, and NGF Charlie 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.
During the NCLT proceedings, SpiceJet requested additional time to resolve the matter, citing ongoing settlement negotiations. The insolvency tribunal directed to list all three petitions on April 7, 2025, for the next hearing.
The lessors had previously leased five 737 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.
In a separate case, the NCLT is looking into whether an insolvency plea filed by a former pilot is barred under Section 10A of the IBC. The tribunal stated, "Counsel on behalf of the Operational Creditor is present and sought time to examine the issue specifically in respect of applicability of Section 10A in respect of certain claim amount and also to the limitation issue." The matter is set for a hearing on April 15, 2025.
SpiceJet, which has been operating for 19 years, is facing insolvency petitions from creditors, including Willis Lease, Aircastle, Wilmington and Celestial Aviation.
This latest legal action follows a Delhi High Court ruling in December 2024 which summoned SpiceJet’s CEO and COO to court after failure to pay $6 million due to engine lessors Team France and Sunbird France.
The airline had been ordered to pay $4.8 million through monthly instalments of $1.2 million through September 2024, as well as weekly rental fees for the engine.
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