An Alterna Aviation special purpose vehicle (SPV) has discontinued its insolvency bid against SpiceJet (SG, Delhi International) in the National Company Law Tribunal (NLCT), according to Money Control. The lessor will now turn to the Delhi High Court to assist it in recovering over USD11 million awarded to it by the UK High Court.
The NCLT Delhi bench accepted an application to withdraw the matter, Alterna Aircraft VB Limited vs SpiceJet Limited, on March 18, 2024, and permitted it to pursue a fresh application to recover the funds in another court.
The SPV is pursuing SpiceJet for USD11.1 million and GBP265,000 (USD337,243) awarded to it on March 2, 2023, by Justice Bright at the Commercial Court of the High Court of England and Wales. Alterna turned to the UK courts to resolve a lease dispute concerning two B737-800s, then registered as VT-SXD (msn 34801) and VT-SXE (msn 34802).
During a January hearing, Alterna's counsel told the NCLT that SpiceJet had neither appealed the order nor paid the monies, so the judge's order had attained finality. Counsel argued the award now constituted a financial debt per the terms of India's Insolvency and Bankruptcy Code (IBC), and the NCLT was the appropriate forum to recover the debt.
Counsel for SpiceJet argued that the NCLT was not the appropriate forum to resolve the matter and the IBC was not a vehicle for debt recovery. During the hearing, the bench indicated they remained unconvinced that the NCLT was the correct forum to recover the UK award.
Recently, the NCLT has sided with SpiceJet in two insolvency matters, dismissing bids by Wilmington Trust SP Services (Dublin) and Willis Lease Finance to have the low-cost carrier declared bankrupt. The airline continues to defend insolvency petitions in the specialist bankruptcy court from Aircastle and Celestial Aviation Services Limited. SpiceJet has also settled insolvency petitions lodged by lessors out of court, including those lodged by AerCap and Cross Ocean Partners.
SpiceJet did not respond to a request for comment.
Money Control reports that Alterna will soon commence legal action against SpiceJet in the Delhi High Court to enforce the UK judgement. That court has become a favoured forum for litigants seeking to recover monetary awards, enforce judgements, and settle disputes against SpiceJet without having the LCC declared insolvent.
