Two aircraft lessors have secured a USD15 million summary judgement against SpiceJet (SG, Delhi International) and are expected to seek enforcement through India's National Company Law Tribunal (NCLT). Reports also suggest another three legal cases are pending against the carrier in UK courts.

As reported by India's MoneyControl outlet, in a judgment handed down on May 10 at the Commercial Court of the High Court of Justice in the matter of GASL Ireland Leasing A-1 Limited v SpiceJet Limited, Justice David Foxton awarded GASL USD8,490,312.39. Five days later, at the same court, Deputy Judge Charles Hollander, in the matter of VS MSN 36118 CAV Designated Activity Company v SpiceJet Limited, awarded VS MSN USD5.89 million.

The GASL matter relates to a B737-800, then registered as VT-SLI (msn 29670), leased to SpiceJet in May 2017. In February 2022, owed USD5,334,121.25 in unpaid leases and dealing with the non-return of the plane, GASL obtained a summary judgment from the UK court. The amount remains unpaid. The lessor maintained an action against the airline, alleging it failed to meet pre-set aircraft redelivery conditions. A dispute over the aircraft's return to the lessor followed. The plane was returned to GASL in August 2022 in what one independent expert described to the court as in the "worst (condition) I have seen in relation to an ‘in service’ aircraft which had been presented for redelivery." GASL sought the unpaid lease amounts plus the costs of repairing the B737-800, or more than USD8 million. In the final stages of the High Court hearing, SpiceJet was unrepresented. Despite the airline's no-show, Foxton said his decision favouring GASL was "no rubber stamping exercise."

The VS MSN matter revolved around a B737-700, then registered as VT-SLP (msn 36118), which SpiceJet leased for 96 months in April 2018. By September 2022, SpiceJet owed over USD4 million in back leases, despite obtaining a USD1.65 million lease waiver deal in November 2020 and an agreement to begin paying monthly instalments to reduce the outstanding amount. SpiceJet went on to miss many of those monthly instalments. SpiceJet was represented throughout this matter and argued that despite defaulting, they should not be liable for future rental payments per the original contract. Hollander agreed this was a severe clause, but ruled that SpiceJet entered into the lease agreement fully aware of the clause that said VS MSN was entitled to full payment up to May, 2026, in the event of a default. He awarded the lessor almost USD6 million, covering lease monies owed to date and future payments through to the end of the lease. ch-aviation fleets data indicates VT-SLP remains at SpiceJet and in active service.

MoneyControl reports that another three cases against SpiceJet are in train in the UK courts. However, it does not identify the petitioners beyond saying one is a Turkish entity. GASL and VS MSN are now expected to head to the NCLT to seek enforcement of the UK orders. There they will join Aircastle, Wilmington Trust Co Trustee, and Willis Lease Finance on the tribunal's case list. All three lessors are attempting to have SpiceJet declared insolvent. A fourth entity, real estate and construction firm Acres Bidwell, recently settled its insolvency case against the airline.

Meanwhile, Aircastle increased the pressure on SpiceJet at the NCLT on June 14, filing a second plea against the airline at the tribunal. Normally, the NCLT only allows petitioners to file one plea (Aircastle filed its first petition on April 28). It is anticipated that the number of cases pending against SpiceJet will compel the NCLT to send the carrier into the insolvency process, something CEO Ajay Singh said would not happen. The NCLT will hear Aircastle's first plea in Delhi on July 17. The tribunal has yet to decide whether it will accept the lessor's second plea.