Fresh turbulence for SpiceJet: Airline hit by $12.68 million insolvency claims as 3 lessors, ex-pilot move NCLT

Spicejet faces renewed financial troubles, as three founders in Ireland in Ireland and the former pilot presented insolvency against the airline in the NCLT law court, noting unpaid dues.

Records NGF Alpha, NGF Genesis and NGF Charlie transferred NCLT according to Article 9 of the Honorable and Banking Law (IBC), seeking to start insolvency procedures on suspended payments that total $ 12.68 million (about 110 rupees). The prisoners, who rented five Boeing 737s to Spicejet, also accused the airline of removing the aircraft parts, including engines, and using them in other aircraft.

During NCLT actions earlier this week, Spicejet requested time to resolve the conflict, saying that the settlement discussions are ongoing. “A lawyer on behalf of the operating creditor (Spicejet) is present and seeks time to search for instructions on the future work course that must be taken in this regard,” the court noted its arrangement. The next session of these petitions is scheduled for April 7, 2025.

In a separate condition, NCLT examines whether the insolvency call to a former pilot is prohibited under Article 10A of IBC. The court stated, “The lawyer on behalf of the operating creditor is present and time seeking to study the case specifically in relation to the application of Article 10A in relation to a specific amount of claim and also the case of the limit.” The order was appointed to a listening session on April 15, 2025.

Section 10A, which was submitted as a temporary reduction measure during the epidemic, prevents financial and operating creditors from starting insolvency procedures for negligence that occurs between March 25, 2020 and 24 March 2021.

SAICEJET is already fighting multiple issues of lessons, sellers and creditors in NCLT and the National Appeal Court of the company (NCLAT). Creditors, such as Willis League, Aircastle Ireland Ltd, WilMington, and Celestial Aviation, began insolvency measures against the airline.

In September 2024, Spicejet collected 3000 rupees with a qualified institutional status, with the aim of clarifying the dues owed by the lecturers, engineering sellers and financiers. However, with the accumulation of new petitions, the financial problems of the airline remain out of completion.

(With PTI inputs)