Wilmington Trust Seeks Insolvency Appeal Against SpiceJet at NCLAT

New Delhi, Mar 20 - In a significant development in the aviation sector, Wilmington Trust SP Services, an aircraft lessor based in Dublin, Ireland, has approached the National Company Law Appellate Tribunal (NCLAT) with an appeal. This move comes after the National Company Law Tribunal (NCLT) in Delhi dismissed its insolvency plea against the low-cost carrier SpiceJet. The appeal by Wilmington Trust has been scheduled for a hearing on Thursday before a bench led by Chairperson Justice Ashok Bhushan.

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The dispute traces back to June 2023 when Wilmington initiated an insolvency plea against SpiceJet over claims of unpaid dues. However, SpiceJet countered the plea at NCLT, arguing that Wilmington was associated with Aircastle, which had previously filed two insolvency pleas against the airline. Wilmington contested this claim, asserting its role as a trustee of Aircastle and maintaining that its plea was valid under the Insolvency & Bankruptcy Code.

SpiceJet has been at the center of several insolvency pleas filed by its aircraft lessors, including Willis Lease, Aircastle Ireland Ltd, Wilmington, and Celestial Aviation. This month saw Alterna Aircraft BV Ltd, another aircraft lessor from Ireland, retract its insolvency plea against SpiceJet at NCLT, opting instead to pursue the matter in a different forum. Additionally, in December 2023, NCLT dismissed an insolvency plea by Willis Lease against SpiceJet.

The ongoing legal battles highlight the financial challenges faced by airlines and the complexities of aircraft leasing agreements. The outcome of Wilmington Trust's appeal could have implications for SpiceJet and set a precedent for how similar cases are handled in the future.