SpiceJet (SG, Delhi International) has challenged the multiple insolvency petitions filed by Aircastle and Wilmington Trust SP Services (Dublin), causing the National Company Law Tribunal (NCLT) to grant more adjournments.
Krishnendu Dutta, appearing for the distressed budget carrier at the tribunal on July 17, argued against the validity of Aircastle running two simultaneous insolvency petitions and Wilmington having three insolvency petitions. However, as reported in India's Economic Times, Chinmoy Sharma, appearing for Aircastle, argued that the lessor was within its rights to file separate petitions, given SpiceJet defaulted on multiple contracts covering different aircraft and different invoices. Sharma also noted there was precedence from earlier judgements allowing a creditor to file more than one petition against a debtor. Aircastle is chasing USD5.9 million from SpiceJet.
Ritesh Singh, appearing for Wilmington, said the three separate petitions provided clarity and simplicity, and also argued that there was no prohibition on filing multiple petitions, saying that each default required a separate petition. Dutta requested and was granted, ten days to file a reply to the lessor's arguments.
SpiceJet has now challenged the validity of insolvency petitions from three lessors. Earlier this month, Dutta argued against the admissibility of an insolvency petition filed by Willis Lease Finance after the engine lessor withdrew an earlier application. Dutta said the second petition was for the same course of action as the first. Counsel for Willis said this was not the case, and the new petition excluded some debts. Willis is pursuing SpiceJet for USD6.87 million, with CEO Austin Willis recently telling ch-aviation that SpiceJet "routinely failed to live up to their promises in the leases and beyond."
The NCLT will return to the Willis insolvency petition on July 21, while it has relisted the Aircastle matter for August 8 and the Wilmington plea for August 17. Both Wilmington and Aircastle have recently managed to get aircraft placed at SpiceJet de-registered by India's Directorate General of Civil Aviation.
