NCLT Rejects Wilmington Trust's Insolvency Plea Against SpiceJet Over Unpaid Dues

30 Jan 2024 , 12:42 PM

The National Company Law Tribunal (NCLT) dismissed an insolvency plea against SpiceJet filed by lessor Wilmington Trust SP Services on January 29.

The plea was filed in June 2023 over unpaid dues, triggered by the Directorate General of Civil Aviation (DGCA) deregistering three SpiceJet planes in May 2023 at the lessors’ request.

Wilmington Trust SP Services, Sabarmati Aviation Leasing, and Falgu Aviation Leasing sought deregistration of three Boeing 737-800s due to non-payment of dues.

The DGCA deregistered planes with call signs VT-MXJ, MXF, and SZJ.

SpiceJet argued Wilmington was part of Aircastle, which had previously filed two insolvency pleas.

Wilmington asserted its status as Aircastle’s trustee, claiming its insolvency plea is maintainable under the Insolvency and Bankruptcy Code, 2016, as a trust can be classified as an operational creditor.

Wilmington’s lawyer, Ajay Kumar, presented documents to establish Wilmington as a distinct entity from Aircastle, urging the court to issue a notice and request SpiceJet’s response.

Senior advocate Krishnendu Dutta, representing SpiceJet, argued that Wilmington and Aircastle were the same entity, making it the organization’s third insolvency plea against SpiceJet. He contended that an insolvency plea by a trustee was not maintainable.

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